The Council of Ministers,
after perusal in its session held under the chairmanship of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, of Royal Court File 88564 dated 7 Dhu Al-Qa’dah 1447 [24 April 2026], which includes Ministry of Finance Letter 3612 dated 17 Rabi Al-Thani 1447 [9 October 2025], regarding the amendment of the Unified Agreement for Value Added Tax of the States of the Cooperation Council for the Arab States of the Gulf, approved by Royal Decree D/51 dated 3 Jumada Al-Awwal 1438 [31 January 2017],
after perusal of the Unified Agreement on Value Added Tax of the States of the Cooperation Council for the Arab States of the Gulf, approved by Royal Decree D/51 dated 3 Jumada Al-Awwal 1438 [31 January 2017],
after perusal of Bureau of Experts at the Council of Ministers Memo 2352 dated 25 Jumada Al-Thani 1447 [16 December 2025],
after perusal of Council of Economic and Development Affairs Recommendation 5-9/47/R dated 2 Ramadan 1447 [19 February 2026],
after considering Shura Council Decision 329/26 dated 3 Dhu Al-Qa’dah 1447 [20 April 2026],
and after perusal of General Committee of the Council of Ministers Recommendation 12558 dated 26 Dhu Al-Qa’dah 1447 [13 May 2026],
hereby decides
The amendment to the Unified Agreement on Value Added Tax of the States of the Cooperation Council for the Arab States of the Gulf, approved by Royal Decree D/51 dated 3 Jumada Al-Awwal 1438 [31 January 2017] is hereby approved, as follows:
First
Article 12(4) is amended to read as follows:
4. In the event that the goods are supplied without transport or dispatch and it is subsequently proven that these goods have been transported or dispatched to a member state in the cases stipulated in clause 1 of this article, the tax must be settled or refunded in accordance with the following:
(a) The state in which the transport or dispatch ends has the right to settle or refund the tax from the member state in which the transport or dispatch began, in accordance with the direct automatic transfer mechanism used by customs.
(b) As an exception to paragraph (a) of this clause, the ministerial committee may approve any other provisions to regulate the settlement or refund of the tax, including allowing the member state in which the transport or dispatch ends to levy the tax on these supplies at the points of entry to that state, with the settlement or refund of the tax paid and collected in the state of supply directly to the taxpayer or non-taxpayer client in another member state.
Second
Article 13 is amended to read as follows:
The case of intra-community supplies to non-registered persons
1․ Each member state has the right to claim from the other member state the tax paid if the value of the supply exceeds the amount of 10,000 Saudi Riyal or the equivalent in the currencies of the council states for individuals and non-registered persons, and to settle or refund the tax in accordance with the mechanism of direct automatic transfer of customs duties applied within the framework of the customs union of the states of the cooperation council.
A member state also has the right to levy tax on these supplies at the points of entry to that member state in the event that proof of payment of the tax in the other member state is not provided.
2․ As an exception to clause 1 of this article, the ministerial committee may approve any other provisions to regulate the settlement or refund of the tax, including allowing the member state to levy the tax on these supplies at the points of entry to that state, with the settlement or refund of the tax paid and collected in the state of supply directly to individuals and non-registered persons residing in another member state.
Third
Article 25(1) is amended to read as follows:
1. Each member state shall apply the tax at the basic rate in accordance with its domestic law, provided that it is not less than 5% of the value of the supply or import, unless there is a provision for exemption or the levying of a rate of zero percent on the same supply in this agreement.
Fourth
Article 64 is amended to read as follows:
Payment of tax on imports
1․ The tax due on imported goods must be paid at the first point of entry and deposited in a special tax account, and must be transferred to the state of final destination in accordance with the mechanism of direct automatic transfer of customs duties applied within the framework of the customs union.
2․ As an exception to clause 1 of this article, the ministerial committee may approve any other provisions for the settlement of the tax due on imported goods, including allowing the other member state to levy the tax on imported goods at the points of entry to that member state in accordance with the provisions of this agreement, with the settlement or refund of the tax paid and collected at the first point of entry directly to the taxpayer or non-taxpayer importer residing in another member state.
3․ Each member state may, in accordance with the conditions and controls it specifies, allow the taxpayer to defer payment of the tax due on goods imported for the purposes of economic activity, and to declare it in its tax return. The tax due, the payment of which is deferred and which is declared, is considered deductible in accordance with the provisions of this agreement.
Fifth
Article 71(4) is amended to read as follows:
4. The competent tax authority in the states between which intra-community supplies have been made has the right to access information relating to intra-community supplies made between persons in those states.
A draft royal decree has been prepared in the form attached.
Salman bin Abdulaziz Al-Saud
Issued on: 2 Dhu Al-Hijja 1447
Corresponding to: 19 May 2026
Published in Umm Al-Qura 5162 issued on 5 June 2026.