The Zakat, Tax and Customs Authority has stated clearly that the "Ruling service" provided by the Authority has become a requirement for the Authority in order to benefit all those who have economic activities or existing commercial transactions, who are in the planning stage to start them, or who are interested, whether from inside or outside the Kingdom. This relates to how all tax rules and regulations are applied.
The Authority declared that through the mandatory provision of this service, anyone is permitted, subject to certain conditions and criteria, to submit a request for a ruling regarding any tax (Value-Added Tax, Selective Goods Tax, Real Estate Transaction Tax, Income Tax on Foreign Establishments, Withholding Tax). This can be done through the page designated by the Authority for this service on its website, zatca.gov.sa, or through the email address Policy-Ruling@zatca.gov.sa if the applicant needs to be registered with the Authority.
According to ZATCA, it aims to mandate that this service clearly explain all tax treatments associated with the issues for which the ruling must be issued, based on the applicable tax laws, regulations, and guidelines, so that the tax treatments contained in the ruling are enforceable against the Authority and seem simple to understand for the beneficiary. This would help in raising knowledge and achieving tax certainty, in addition to the service's role in enhancing taxpayer compliance and reducing tax risks in economic activity.
The Authority urged all interested parties, both those registered and those who are not, to take advantage of the Ruling service in the event that the requirements for accepting the Ruling request are met, the most important of which is the applicant's application's unclear tax treatment.
This service is part of ZATCA's ongoing efforts to implement the best tax practices in accordance with the goals of the Kingdom's Vision 2030 and to improve the business environment for investors. It is also part of its efforts to raise awareness among its taxpayers, interested parties, and stakeholders.
The Authority urged anyone looking for further details about the service to refer to its guideline available through the guidelines and instructions page on the Authority's website, which includes an explanation of all details related to the service, including the mechanism for submitting ruling requests, cases of acceptance or rejection, and procedures for studying them by the Authority.
