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
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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.


King Salman’s support vital to national heritage achievements

Updated 33 min 30 sec ago
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King Salman’s support vital to national heritage achievements

  • The Saudi leadership made key decisions to protect antiquities and historical sites
  • Saudi Arabia aims to conduct awareness campaigns, establish museums and develop them in a modern way to attract citizens and visitors

JEDDAH: The achievements made in Saudi Arabia’s national heritage sector, and the prizes and awards that have been won as result, are thanks to the support and efforts of King Salman, said Prince Sultan bin Salman, president of the Saudi Commission for Tourism and National Heritage (SCTH).
His comments came as the king received the Sharjah International Award for Cultural Heritage, which was awarded in recognition of the Custodian of The Two Holy Mosques cultural heritage program.
King Salman oversaw the creation of the antiquities and heritage sector 50 years ago and stood firmly against the elimination or extinction of archaeological and heritage sites, Prince Sultan said, and has made historical and important decisions to protect antiquities since the era of the late King Saud.
This support culminated in the adoption of the innovative Custodian of The Two Holy Mosques for the Care of Cultural Heritage program, implemented by the commission to bring about a qualitative shift in projects and programs devoted to national cultural heritage.
Prince Sultan said: “The award is a result of King Salman’s follow-up and support to the program, which the SCTH and our team have translated into projects and initiatives carried out in cooperation with highly professional partners, in order to preserve, restore and develop the national heritage and make it a reality that connects citizens to their country’s history and heritage.”
He said the SCTH has built upon the great efforts of the institutions that preceded it in taking care of the nation’s antiquities, as well as individual efforts to preserve national heritage.
“Today, we reap the fruits of these efforts: The culture we have learnt from King Salman and previous leaders, which has taught us to complete the work and loyalty of all those who built and achieved before us,” he said.
Dr. Sultan bin Mohammed Al-Qasimi, a member of the Federal Supreme Council and ruler of Sharjah, announced that the Sharjah International Award for Cultural Heritage had been awarded to the Custodian of The Two Holy Mosques Program for the Care of Cultural Heritage during a ceremony on April 22, 2018.
The program aims to protect, promote and develop cultural heritage and make it part of the life and memory of citizens. It also conducts awareness campaigns, establishes museums and develops them in a modern way to attract citizens and visitors, prepares Islamic historical sites to welcome visitors, and preserves culturally important buildings and towns to showcase the role of the Kingdom as a crossroads for civilizations through the ages and achieve a qualitative shift in the field, contributing to economic growth.