Referring to the Value Added Tax Law issued by Royal Decree No. M/113 dated 2/11/1438 H and the Executive Regulation of the Value Added Tax Law issued by the Board of Directors of the General Authority for Zakat and Tax under Decision No. (3839) dated 14/12/1438 H.

The Central Bank wishes to emphasize the importance for all financing entities to comply with the Value Added Tax Law, its Executive Regulation, and the guidelines and instructions issued by the General Authority for Zakat and Tax in this regard. Additionally, the Central Bank confirms that financing entities have the right to demand that clients pay the Value Added Tax amounts due for previous periods from real estate financing contracts. To facilitate clients, financing entities may offer all possible options for payment or settlement in accordance with the relevant regulations and instructions, provided that written consent is obtained from the client if they accept any payment or settlement option before proceeding with any payment of the due amount. If the client does not accept the available options for settling the VAT amounts due for previous periods, the financing entity may seek recourse through the competent judicial authorities to claim the payment of those amounts.

For your information and compliance. The Central Bank will take the necessary legal measures in the event of non-compliance with these instructions.