Important Notice – VAT Rate Increase
In accordance with Royal Order Number A/638, issued on 15/10/1441 H (7 June 2020), the Value Added Tax (“VAT”) rate for AWS services will increase from 5% to 15% with effect from 1 July 2020.
On 1 July 2018, Amazon Web Services EMEA SARL (“AWS Europe”), our Luxembourg-based AWS entity, started to sell our services. AWS Europe provides all AWS cloud services for your accounts based in these countries and territories in Europe, the Middle East, and Africa. Please read the AWS Europe FAQs for more detail.
Overview
In addition to its headquarters (“HQ”) in Luxembourg, AWS Europe has branches (or “ فرع ” in Arabic) in several countries in EMEA, including The Kingdom of Saudi Arabia (“KSA”). The branches are not subsidiaries (or “الشركة التابعة ” in Arabic): they are the same legal entity as AWS Europe HQ in Luxembourg. In KSA, the branch has the relevant resources to be a registered establishment and is, therefore, treated as a local vendor for purposes of VAT.
Please note that the AWS Europe KSA Branch started selling our services to customers in KSA on 1 September 2019.
If you have accounts located in KSA, the AWS Europe KSA Branch is required to charge local VAT (or “ ضريبة القيمة المضافة “ in Arabic) on all service charges incurred from 1 September 2019. If applicable, AWS Europe KSA Branch also issues valid VAT Invoices, available in the Bills section of the console under the header “Tax Invoices”. All VAT collected from customers in KSA will be paid to the KSA Tax Authority.
If you have a valid Tax Registration Number (“TRN”) associated with VAT, please visit the Tax Settings page of the AWS Billing Console and confirm or update your details, including your Business Legal Address for all of your account(s). This will ensure that your TRN is displayed on the AWS Europe KSA Branch VAT invoice, to enable you to claim a credit for VAT charged by AWS Europe KSA Branch, in accordance with your own circumstances, as well as local laws and regulations.
For additional information on TRN, please click here.
How does AWS determine if your account located in KSA?
At the moment of invoicing, AWS determines the location of each individual account, based on certain information, including your TRN, your Billing address and your Contact address. The result of AWS’ determination is shown as the “Tax Address” on the Tax Settings page of each account.
If you have a consolidated billing family, please note that each account is assessed individually: linked accounts do not inherit the Tax Address or the TRN of the payer account. The payer account can view the Tax Address of all their linked accounts on their own Tax Settings page.
Please click here for additional information.
Additional Information
For additional information on the application of VAT in KSA, please visit the GAZT’s website.