Saudi Arabia’s VAT implementing regulations defined

Among transactions exempted from Saudi Arabia’s Value Added Tax include loans, credit cards, mortgages and deposits and savings accounts. (Reuters)
Updated 10 November 2017

Saudi Arabia’s VAT implementing regulations defined

RIYADH: The implementing regulations of the Value Added Tax (VAT) system has defined exempted activities in the financial sector that include many types of transactions and services, such as interest on loans or lending fees charged with an implicit profit margin.
These exempted activities include loans, credit cards, mortgages, finance leases, banknotes or securities transactions, current accounts, deposits and savings accounts. The transfer of funds from the tax has also been exempted and charged to the transfer fees.
As for the transfer of funds, the executive regulation demonstrated, as quoted by Al-Hayat newspaper, that the amount transferred is not subject to VAT, but is charged with a transfer fee of 5 percent and paid by the person who transfers the money.
The regulation specifies taxable cases of 5 percent, subject to tax at zero rated, exempt or outside the scope of the tax.
Entities engaged in economic activity subject to tax shall be entitled to recover the amount of the VAT they paid on their taxable inputs, which are related only to taxable activities by 5 percent or zero rated. Enterprises engaged in exempt economic activities are not entitled to recover the amount of VAT they have paid on their taxable inputs.
The VAT will be applied in the Kingdom on January 1, 2018 as part of the Unified Agreement for VAT in the GCC Region.
The General Authority of Zakat and Tax has invited all entities to register in the VAT through the VAT.GOV.SA website. This website provides a wide range of tools and information that is a reference to support these enterprises to ensure their readiness, along with visual aids, all the information, and general and technical FAQs that include aspects of the registration process and the willingness to apply the tax.


Madinah museum showcases over 2,000 rare artifacts

Updated 23 August 2019

Madinah museum showcases over 2,000 rare artifacts

  • The museum has issued more than 44 books and publications on Madinah’s architecture

MADINAH: Dar Al-Madinah Museum offers visitors the opportunity to view historical pieces associated with the Prophet’s life. It features artifacts that capture the history, heritage, social life and culture of Madinah.

The museum’s executive director, Hassan Taher, said that it aims to promote the noble values of the Prophet Muhammad, encourage a sense of belonging and capture the history, culture and heritage of Madinah. The exhibits start with the Prophet’s life and end with the Saudi era.

Taher said: “The museum carries out specialized research in Madinah’s architectural heritage. It contains a library of relevant books, research and magazines, all of which are accessible to researchers.”

He said that the museum has issued more than 44 books and publications on Madinah’s architecture.

Taher explained that when preparing the museum’s narrative, it was necessary to reconcile temporal and spatial contexts so they created an added moral and intellectual value for the visitor.

He added: “There are around 2,000 artifacts in the museum’s exhibition halls. These include antiquities, extremely accurate models, handicrafts, manuscripts, documents, correspondence, old publications, postage stamps, photographs and artworks.”

One of the museum’s most valuable exhibits is a large collection of rare pieces associated with important moments in the Prophet’s life and the history of Madinah. 

These include various parts of the Kaaba, rare coins used in Madinah during different eras, ancient pottery, Islamic manuscripts, jewelry and collectibles from the pre-Islamic era.

Taher said that the museum has a professional team of guides who speak several languages, including English, Turkish, Urdu and Malay.