Value Added Tax (VAT) in the Kingdom Saudi Arabia

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Value Added Tax (VAT) in the Kingdom of Saudi Arabia

Draft VAT law released for January 2018 commencement

The Kingdom of Saudi Arabia has released a draft domestic VAT law for public consultation. This follows the public release of a VAT Framework Agreement, signed by each of the six Member States of the Gulf Cooperation Council (GCC). Together, the law and the Framework Agreement lay the legal foundations for VAT to be introduced across all sectors in Saudi Arabia from 1 January 2018.

The announcement of draft law is a further reason for businesses to accelerate their VAT readiness preparations. Preparation is key because VAT liabilities are generally self-assessed, with errors often subject to severe penalties and time consuming interactions with local tax authorities, or worse, causing a business disruption.

Deloitte has therefore prepared this document to provide guidance to businesses on the below topics:

  • What’s happening with VAT in KSA
  • Effects and obligations of VAT
  • Domestic specifics of VAT law
  • Dealing with authorities
  • Penalties and fines for non-compliance
  • VAT on cross-border trade
  • Immediate actions
  • Getting ready for VAT
  • The next steps forward
Value Added Tax (VAT) in the Kingdom Saudi Arabia
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