VAT reverse charge
VAT reverse charge is an anti-fraud measure which applies to the sale and purchase of specific goods and services. These are typically high value, portable, electronics such as mobile phones. The reverse charge procedure holds the purchaser liable to account for the VAT on the sale.
VAT is not charged by the vendor. The invoice must show the value of VAT due under the reverse charge rules. It must state that the reverse charge applies, and that the trading account customer is required to account for the VAT.
Saudi Arabia specifics
The Saudi Arabian tax authority has published guidance on the reverse charge rules for B2B supplies that are provided by non-residents.
Saudi Arabia has confirmed the special rule place of taxation in other specific conditions, including these items:
- Live events, including education and business training: where physically performed.
- Real estate: Where the property/land is located.
- Digital, telecoms and broadcast: From the country of consumption.
- Hotel, restaurant, and catering: Where the event is performed.
How Infor meets the requirement
You must enable the VAT reverse process. Perform these tasks to enable and process VAT reverse charges: