Author: Decree

Arabic

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 69357 dated 29 Sha’ban 1447 [17 February 2026], which includes the Minister of Environment, Water, and Agriculture, Chairman of the Board of Directors of the Saudi Water Authority Telegram 11011639 dated 11 Safar 1447 [5 August 2025], regarding his request to repeal the provisions contained in Council of Ministers Decision 100 dated 9 Rabi Al-Thani 1432 [14 March 2011] and Decision 249 dated 20 Jumada Al-Awwal 1439 [6 February 2018],

after perusal of the Organizational Arrangement of Water Plants issued by Council of Ministers Decision 100 dated 9 Rabi Al-Thani 1432 [14 March 2011],

after perusal of the Regulation on Penalties for Violations of Water Plants and Shops issued by Council of Ministers Decision 249 dated 20 Jumada Al-Awwal 1439 [6 February 2018],

after perusal of Bureau of Experts at the Council of Ministers Memo 1704 dated 6 Jumada Al-Awwal 1447 [28 October 2025] and Memo 3477 dated 11 Shawwal 1447 [30 March 2026],

after perusal of Council of Economic and Development Affairs Recommendation 18-21/47/I dated 22 Jumada Al-Awwal 1447 [13 November 2025],

after considering Shura Council Decision 262/22 dated 28 Sha’ban 1447 [16 February 2026],

and after perusal of General Committee of the Council of Ministers Recommendation 11448 dated 26 Shawwal 1447 [14 April 2026],

hereby decides

First

The Organizational Arrangement of Water Plants issued by Council of Ministers Decision 100 dated 9 Rabi Al-Thani 1432 [14 March 2011] is hereby amended as follows:

1․ Clause 1(1)(b) and (1)(c) are hereby deleted.

2․ The phrase “or not bottled” and the phrase “or desalination shops” are hereby deleted from the definition of “technical licence” provided in clause 1(2) of it.

3․ The phrase “or not bottled” and the phrase “or any shop related to the production of water” are hereby deleted from the definition of “municipal licence” provided in clause 1(3) of it, and the phrase “or opening” is hereby added to it, so that the definition reads as follows:

Municipal licence:
The licence issued by the Ministry of Municipalities and Housing for the establishment or opening of a bottled water plant or an ice factory, so that the licence is specific to the site and complies with the regulations and conditions of the ministry

4․ Clause 3(3) and (4) are hereby deleted.

5․ The phrase “unbottled drinking water” is hereby deleted from clause 11(2), as amended by Council of Ministers Decision 685 dated 2 Dhu Al-Qa’dah 1441 [23 June 2020], so that the paragraph reads as follows:

2. It is prohibited to export ice outside the Kingdom.

Second

Council of Ministers Decision 249 dated 20 Jumada Al-Awwal 1439 [6 February 2018] is hereby repealed.

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.

Arabic

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.