Saudi: New VAT Rate Comes into Effect
Saudi Arabia’s decision to raise value-added tax (VAT) from 5 percent to 15 percent has come into effect starting from Wednesday (July 1).
The new VAT rate will apply to all goods and services subject to it in commercial markets after the announcement of royal order on May 11 to amend Article (II) of the value-added tax regulation, which included raising the tax rate from 5 percent to 15 percent.
The Authority urges people to check the elements of the tax invoice, which are: the store name, the date of purchase, the tax number, and the value-added tax cell, calling on them to cooperate with it and report any violating facility in the event that these elements are not available, through the website of the authority (gazt.gov.sa), and through the application (tax added) for smartphones.
