KSA issues draft VAT law

The Kingdom of Saudi Arabia (KSA) has issued its draft VAT law today after the representatives of the Member States of the Gulf Cooperation Council (GCC) confirmed the introduction of a formal VAT system across all six Member States through the signing of the VAT Framework Treaty in April 2017. 

VAT will be implemented in the Kingdom starting January 1st 2018. The draft VAT law includes 12 chapters as per the below:

• Chapter 1: General definitions
• Chapter 2: Imposition of tax
• Chapter 3: Taxable persons
• Chapter 4: Supplies of goods and services
• Chapter 5: Place of supply
• Chapter 6: Exempt and zero-rated supplies
• Chapter 7: Taxable value
• Chapter 8: Imports
• Chapter 9: Calculation of tax
• Chapter 10: Procedure and administration
• Chapter 11: Penalties and fines
• Chapter 12: General provisions

The law is available for reading and for consultation on the following link. Feedback can be lodged directly with GAZT via its website.