Article 79 - Transitional provisions

1. If an invoice is issued or Consideration is paid before the commencement date of the Law in respect of a Supply which occurs on or after the commencement date of the Law in accordance with the provisions of this article, the Supplier of the Goods or services shall be considered to make a Taxable Supply on the date the Goods or services are supplied, in accordance with the Agreement. 

In such cases the Taxable Person shall issue an additional invoice showing the Tax charged on the Supply of Goods or services, unless this Tax was included on the invoice issued before the commencement date of the Law.

2. For the purposes of this article, the date of a Supply occurs on or after the commencement date of the Law in the following cases:

(a) if the date when Goods are delivered or made available occurs on or after the commencement date of the Law,

(b) if the date when the performance of services is completed occurs on or after the commencement date of the Law.

3. Any Supply of Goods or services made in respect of a contract which does not anticipate the application of VAT to the Supply may be treated as zero-rated by the Supplier until the earlier of the time the contract expires, is renewed or 31 December 2018 provided that:

a) the contract was entered into before 30 May 2017,

b) the Customer is entitled to deduct Input Tax in respect of the Supply of Goods or services in full or is an Eligible Person entitled to a refund of the Tax,

c) the Customer provides a written certification to the Supplier that Input Tax is able to be deducted or refunded in full on the Supply.

4. Any Person who is a Resident Person and carrying on an Economic Activity as at the date these Regulations come into force or at any date up to and including 20 December 2017 shall:

a) make an estimate of annual turnover for the year commencing 1 January 2018,

b) apply to the Authority for registration in cases where the value of annual Taxable Supplies in this year is expected to exceed the Mandatory Registration Threshold.

The Authority shall for the purposes of paragraph 5(a) of article three of the Law, have the discretion to accept late registrations under this article save that the last date for any registration to which this article applies shall be 20 December 2017.

5. As a transitional measure the Authority may register Persons who are expected to be required to mandatorily register in advance of 1 January 2018. All registrations under the fourth and the fifth paragraph of this article will be effective from 1 January 2018.

6. Any Member State which has not introduced VAT following 1 January 2018 will be considered a country outside of Council Territory in accordance with the Agreement. A Supply treated under the provisions of the Agreement as made in such Member State shall be considered as being made in a third country outside of Council Territory and persons who is a Resident Person in such Member State will be treated as residents of a third country.

7. Prior to the introduction of the Electronic Services System in all Member States:

(a) a Taxable Person who receives Goods into the Kingdom from another Member State shall be deemed to have imported the Goods into the Kingdom, and Tax will be collected in accordance with the provisions for other imports,

(b) Supplies of Goods involving transport of the Goods from the Kingdom to another Member State shall be treated as an Export of the Goods for VAT purposes.

8. For the purposes of these Regulations, the date of introduction of the Electronic Services System will be formally announced by the Authority by way of an order issued by the Authority.

9. Notwithstanding any other provision of the Law and these Regulations a Person whose value of annual Supplies exceeds the Mandatory Registration Threshold but does not exceed one million (1,000,000) riyals is exempted from the requirement to register in the Kingdom until 1 January 2019. However, any application for such registration must be submitted that on or
before 20 December 2018. 

This paragraph does not affect any Person’s ability to register on a voluntary basis.