Decree

Arabic

The Board of Directors of the Zakat, Tax, and Customs Authority “the board”,

based on the powers entrusted to the board in article 5 of the statute of the authority approved by Council of Ministers Decision 570 dated 22 Ramadan 1442 [4 May 2021], Royal Order 54152 dated 5 Rajab 1447 [25 December 2025], and what is stated in clause First, “Value added tax is hereby not due on real estate supplies to an individual who did not engage in a real estate activity on an ongoing and regular basis for the purpose of generating income—before the entry into force of the provisions of the Real Estate Transaction Tax on 17 Safar 1442 [4 October 2020]—unless that individual carried out more than one supply—within 12 months—the total value of which exceeds the mandatory registration threshold in accordance with 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],” and clause Fourth, “An individual who is liable for value added tax on his real estate supplies is hereby exempted from the tax penalties—not paid—imposed on him in accordance with the Value Added Tax Law from its entry into force on 14 Rabi Al-Thani 1439 [1 January 2018] until the entry into force of the provisions of the Real Estate Transaction Tax on 17 Safar 1442 [4 October 2020], and this must be after the payment of the principal amount of the tax due. The exemption must not include penalties imposed due to tax evasion.” in implementation of the provisions of clause Fifth of the Royal Order, “The Zakat, Tax and Customs Authority shall establish the mechanisms and procedures necessary to implement the provisions of the above clauses, and shall issue them by a decision of its board of directors”, after perusal of articles 50 and 52 of the Value Added Tax Law issued by Royal Decree D/113 dated 2 Dhu Al-Qa’dah 1438 [25 July 2017] and its amendments, and after perusal of the minutes of the fourth meeting of the board for the year 2026,

hereby decides

First

The Mechanisms and Procedures Necessary for the Implementation of the Provisions of Royal Order 54152 dated 5 Rajab 1447 [25 December 2025] are hereby approved in the form attached to this decision.

Second

This decision comes into force on the date of its publication in the official gazette, and the date of publication is equivalent to the date of approval of these mechanisms and procedures, and it must be communicated to those required to implement it.

May Allah provide success.

Issued on: 3 Rabi Al-Awwal 1448
Corresponding to: 16 August 2026

Published in Umm Al-Qura 5189 issued on 13 October 2026.