Place of supply
In one sentenceThe rule that determines where a supply took place for tax purposes, inside or outside the Kingdom, so you know whether Saudi VAT applies to it.
Simply put
Not every invoice a Saudi business issues is subject to Saudi VAT. The place of supply is what decides this.
For goods it usually depends on where the goods are at delivery, and for services there are more detailed rules depending on the type of service and where the customer resides.
Example
A design office in Riyadh provided a service to a customer residing outside the GCC: the place of supply may be considered outside the Kingdom, so its tax treatment differs from a service to a local customer; check the rule before issuing the invoice.
Don't confuse it with
Export of goodsExport is a specific case of goods leaving the Kingdom, while the place of supply is a general rule applied to every supply.