Brief Overview of the Treatment of Gifts & Services Without Consideration Under VAT Regulations

According to the prevailing regulations of VAT, a nominal Supply of goods or services, made by a Taxable Person is treated as a Supply of Goods or services by the taxable person except as mentioned below.

The below summary exhibits the kinds of supplies and services offered as gifts to any person, customer or the employees by the taxable person and the limit up to which the said gifts and other related items are exempt under VAT.

 

NOTE:

The maximum annual value of above mentioned supply of goods or services without consideration by a taxable person shall not exceed SAR 50,000 in any calendar year based on the fair market value of those gifts, samples, goods and services.Recommended: Overview of VAT Registration within Appropriate Deadlines