First
Real estate developers eligible for refund, who have deducted the value added tax incurred on their purchases of goods or services related to real estate supplies eligible for refund within their returns submitted to the authority, are hereby allowed to claim the refund of that tax retrospectively, as of 4 October 2020, or from the date of their satisfaction of clauses First, Second, and Third of Ministerial Decision 1754 dated 15 Rabi Al-Thani 1442 [1 December 2020], which includes the “controls and conditions required by the licensed real estate developer eligible to recover the value added tax paid on its purchases related to exempt real estate supplies”, whichever occurs later, by including that paid tax in the recovery requests to be submitted to the authority, and at the maximum limit of the request for the last period of the calendar year in which this decision takes effect, or the last period of the calendar year in which the value added tax return was amended, whichever occurs later, taking into account the following conditions:
(a) That the eligible real estate developer is registered as a taxable person with the authority during the period for which he will claim a refund of the tax.
(b) That the value added tax returns corresponding to the invoices that will be required to be recovered have been amended as a person eligible for recovery for previous periods, provided that he submits to the authority the invoices and documents relating to him.
(c) That the eligible real estate developer has evidence that the tax that he will claim for refund is paid and relates to real estate supplies that are eligible for refund.
Second
Real estate developers eligible for refund from those whose properties have been placed under suspension by the competent entity are hereby allowed to recover the value added tax paid on the supplies of goods or services related to real estate supplies eligible for refund retrospectively, as of 4 October 2020, or from the date of their satisfaction of clauses First, Second, and Third of Ministerial Decision 1754 dated 15 Rabi Al-Thani 1442 [1 December 2020], which includes the “controls and conditions required by the licensed real estate developer eligible to recover the value added tax paid on its purchases related to exempt real estate supplies,” whichever occurs later, whenever the suspension is lifted and to make real estate supplies eligible for refund, to the extent that it is related to real estate supplies eligible for refund, by including that tax in the recovery requests to be submitted to the authority, and at the maximum limit of the request for the last period of the calendar year in which the suspension is lifted, taking into account the following:
(a) In the event that the real estate developer has refunded the tax as a person eligible for refund before placing the properties under suspension, and the suspension results in his supply of real estate that is not eligible for refund, he must pay the amount of the tax that has already been recovered from the authority as a qualified real estate developer, until the suspension is lifted and real estate supplies that are eligible for refund are made.
(b) That the eligible real estate developer has amended the value added tax returns that will be required to be recovered as an eligible real estate developer if he is registered with the authority as a taxable person during the suspension period.
Third
Real estate developers eligible for refund and registered with the authority as taxable persons are hereby allowed to claim the refund of the due value added tax that has been declared, or that has been amended based on the assessment of the authority, for the imported services that must be declared within the value added tax returns in accordance with the mechanism of reverse calculation or for the goods imported into the Kingdom and that must be declared within those returns in accordance with the provisions of article 44 of the regulation, which is related to the eligible real estate supplies, as of 4 October 2020, or from the date of their satisfaction of the clauses First, Second, and Third of Ministerial Decision 1754 dated 15 Rabi Al-Thani 1442 [1 December 2020], which includes “the controls and conditions required by the licensed real estate developer eligible to recover the value added tax paid on its purchases related to the exempt real estate supplies,” whichever occurs later, by including them within the recovery requests to be submitted to the authority, and at the maximum limit of the last period of the calendar year in which this decision or the last calendar year in which that tax was calculated as part of the return, whichever occurs later, taking into account the following conditions:
(a) That the tax due has been calculated as an output tax on previous supplies within their tax returns to the authority.
(b) That the person eligible for the refund does not include the tax required to be recovered as an input tax in the value added tax returns.
(c) That the output tax due is paid or has been settled with the authority.
The payment of the tax or its settlement through the returns submitted to the authority is considered a tax payment document in accordance with the rules and procedures of real estate developers eligible for refund.
Published in Umm Al-Qura 5035 issued on 7 June 2024.
