The Board of Directors of Zakat, Tax and Customs Authority has approved the additional cases for real estate developers to recover VAT, which are the cases mentioned in Board Resolution No. 12-02-24 dated 1445/9/14.

First: When deducting purchase tax

Allowing eligible real estate developers who have deducted VAT incurred on their purchases of goods or services associated with eligible real estate supplies in their declarations submitted to the Authority, to claim a retroactive refund of that tax, subject to the following conditions:

a- The qualified real estate developer must be registered as a taxable person with the Authority during the period for which the tax will be claimed.

b- The developer must have registered as a taxable person with the Authority during the period for which the tax will be claimed.

b- The VAT returns must have been amended with the tax corresponding to the invoices for which the refund will be claimed.

c- The VAT returns must have been amended with the tax corresponding to the invoices for which the refund will be claimed.

C- The qualified real estate developer must have proof that the tax to be claimed has been paid.

Secondly: When properties are placed under moratorium

Allowing eligible real estate developers whose properties have been placed under suspension by the competent authority to recover VAT paid on supplies of goods or services associated with eligible real estate supplies retroactively, as of 4/10/2020, or from the date they fulfill items (I), (II) and (III) of Ministerial Decision No. (1754) dated 15/04/1442 AH, subject to the following:

If the property is placed under suspension, the VAT paid will be refunded.

a- If the real estate developer had recovered the tax as a person eligible for recovery before the real estate was placed under suspension, and the suspension resulted in a real estate supply that is not eligible for recovery, he must pay the amount of tax previously recovered from the Authority as an eligible real estate developer, until the suspension is lifted and he makes real estate supplies eligible for recovery.

B- The developer must pay the amount of tax previously recovered from the Authority as an eligible real estate developer, until the suspension is lifted and real estate supplies eligible for recovery.

b- The qualified real estate developer must have amended the VAT returns with the tax that will be claimed as a qualified real estate developer.

Third: Imported Services Tax

Allowing real estate developers who are eligible for a refund and registered with the Authority as taxable persons to claim a refund of the VAT due that has been declared, or adjusted based on the Authority's assessment, for imported services that must be declared in VAT returns according to the reverse charge mechanism or for goods imported into the Kingdom that must be declared in such returns, subject to the following conditions:

A.

a- The tax due has been calculated as output tax for the previous supplies in their tax returns to the Authority.

B- The tax due has been calculated as output tax for the previous supplies in their tax returns to the Authority.

b- The person eligible for the refund should not have deducted the tax claimed in their VAT returns as input tax.

c- The person eligible for the refund should not have deducted the tax claimed in their VAT returns as input tax.

The output tax due must have been paid or settled with the Authority.

C.

Payment or settlement of the tax through the returns submitted to the Authority shall be considered as a payment document for the tax in accordance with the rules and procedures for real estate developers eligible for refund.