Trading and financing through commodities in the Kingdom of Saudi Arabia has been saved
Trading and financing through commodities in the Kingdom of Saudi Arabia
Your strategic advisor for Indirect Tax matters
There has been a recent upward trend in the commodities trading and financing market across the Gulf Cooperation Council (GCC) region, including the Kingdom of Saudi Arabia (KSA). As a result, businesses are now developing products and services to cater to the growing need. Some of these products are technology focused and have resulted in more complex and fast paced trading involving counter-parties that do not have a presence in the Kingdom.
This has resulted in a range of potential risk areas for commodity market participants including:
- Value Added Tax (VAT) registration obligations for non-resident traders
- Overseas VAT registration obligations for KSA traders/financial institutions
- Input VAT recovery for financial institutions
- VAT registration for a branch
- Trading platforms
We have therefore created an article to highlight the potential risk areas for commodity market participants and our key Indirect Tax services offerings available to businesses operating in KSA.