New VAT information published by the KSA Ministry of Finance
Another step closer to VAT implementation
The Ministry of Finance of the Kingdom of Saudi Arabia has published new Value Added Tax (VAT) information on their website. The new section is in the format of Frequently Asked Questions (FAQ) and is aimed to provide basic information for businesses on the introduction of VAT in the country.
Of particular note are the following points:
- VAT will be introduced on January 1st 2018.
- The VAT rate is expected to be low, 5%. However, some goods and services may be zero-rated or exempt.
- All companies with an annual revenue of 375,000 SAR or above will need to register for VAT with the General Authority for Zakat and Tax. Companies which are below this threshold but still generating revenue of at least 187,500 SAR annually can voluntarily register for VAT.
- Registration for VAT will be made available towards mid-2017.