Value Added Tax (VAT) in the Kingdom Saudi Arabia

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

VAT regulations released for consultation

The Kingdom of Saudi Arabia has recently released draft VAT regulations for public consultation through the tax authority (GAZT) website. This follows an earlier consultation held in June on the KSA’s domestic VAT law. The regulations, the law and the finalized GCC Framework Agreement form the entire foundations for the introduction of VAT across all sectors in Saudi Arabia from 1 January 2018.

Whilst the draft regulations remain subject to consultation and could change in some aspects, taxpayers have now been provided with the full complement of rules to understand their obligations and the impact of VAT for their businesses. A VAT registration process for the largest businesses have already commenced, and the draft regulations state that all other persons liable for VAT will be required to register by the end of September.

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

  • What’s happened
  • Which sectors are subject to VAT  
  • VAT effects and obligations
  • Next steps in consultation
  • Our view
  • Getting ready for VAT 
Value Added Tax (VAT) in the Kingdom Saudi Arabia
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