Saudi Arabia to impose 5% VAT on gasoline from January 1

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Saudi Arabia plans to impose a 5 percent value added tax on gasoline from January 1, 2018, the Saudi tax department said on one of its Twitter accounts.

The announcement on a special VAT Twitter account set up by the General Authority of Zakat and Tax came in response to a question from a Saudi citizen.

VAT is set to be implemented across all the Gulf Cooperation Council (GCC) countries over the next two years, and is expected to bring a new revenue stream to fund social services and infrastructure development.

READ  No VAT on loans, ATM services, says Saudi tax authority

Depending on the readiness of each member state, Gulf countries are set to introduce a uniform rate of VAT between January 1, 2018 and January 1, 2019, as per the states’ Common VAT Agreement.

Credit Source: Gulf News

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