Deemed supply
In one sentenceA case the law treats as a sale even though no price is received, such as the owner taking goods for personal use or giving them away free.
Simply put
If you bought goods and deducted their VAT, then took them out without consideration for yourself or someone else, the law assumes you sold them, so you account for output VAT on them.
The aim is that you do not deduct input VAT on something not used in a taxable activity. The tax is calculated on the goods' market value or their cost.
Worked example
The owner of an electronics store took a computer from inventory for use at home; it cost 4,000 SAR, and he had deducted its VAT on purchase.
Value of the computer4,000 SAR
VAT 15%4,000 × 15%
Output VAT added to the return600 SAR
Don't confuse it with
SupplyAn ordinary supply has a customer who pays, while a deemed supply has no customer and no price, but the tax is calculated as if it were a sale.