Value Added Tax (VAT) in the Kingdom of Saudi Arabia has been saved
Value Added Tax (VAT) in the Kingdom of Saudi Arabia
Final VAT regulations have been published
Following a public consultation in July and August, the Kingdom of Saudi Arabia (KSA) released final VAT regulations through the tax authority (GAZT) website on 29 August. This follows an earlier consultation process and the publishing of a domestic VAT law in July. The regulations, the law and the finalized GCC Framework Agreement form the entire foundations for the introduction of VAT across all sectors in KSA from 1 January 2018.
Taxpayers have now been provided with the full complement of rules to understand their obligations and the impact of VAT for their businesses. Some large businesses have already been registered by GAZT as part of an early process, and the registration portal is now open for other persons liable to register.
The regulations are an extensive document, and businesses should ensure they understand the full implications on their operations. This document summarizes some of the key implications for businesses to be aware of and includes the following:
- What’s happened
- Which sectors are subject to VAT
- VAT effects and obligations
- Next steps in consultation
- Our view
- Getting ready for VAT