ZATCA issued earlier this year a new Guide on Governmental sector. The guide was only available in Arabic. Now the English version is also published.
One of the principal insights is that if Governmental agencies undertake the specific activities assigned to them by the State, then such activities are not subject to VAT. Conversely, VAT will be applicable on any other activities undertaken by the Governmental agencies.
The definition of Governmental agencies is broad and generally includes all KSA Governmental and state bodies. Conversely, private companies fully/partially owned by such agencies will not be considered as a Governmental agency.