Regulatory Alerts2020-01-26
Collecting Amounts Owed to Finance Entities for Previous Periods in Exchange for VAT on Real Estate Finance Contracts
The Saudi Central Bank confirms that finance entities operating in the Kingdom are entitled to collect previous-period Value Added Tax (VAT) from customers on real estate finance contracts. The circular permits entities to offer flexible settlement options subject to written customer consent prior to payment execution, while reserving the right to pursue competent judicial authorities for unaccepted claims. Non-compliance with these directives will trigger regulatory enforcement actions by the Bank.
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