VAT in Saudi Arabia- Happy New Year
Many expats and Saudi nationals enjoyed a tax-free system in Saudi Arabia for decades. Starting from today (Jan 1, 2018) a Value Added Tax is mandatory for the majority of products/services purchased inside the country. It is 5% paid by the buyer.
This newly introduced tax is supposed to jointly be applied in the GCC countries. However, I am not sure if other countries have in fact applied it today or not.
I’m sharing this information just to alert the forum members who deal with the GCC to consider this change in your commercial terms.
Wish you all the best and happy New Year.
Regards- Ali M. Al-Shurafa