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.


KSRelief to provide 5,000 Yemenis with school supplies

Saudi Arabia is ranked the first donor in the world when it comes to humanitarian financial and logistical support in Yemen. AFP
Updated 17 July 2018
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KSRelief to provide 5,000 Yemenis with school supplies

  • There are two million Yemeni children out of school because of the Houthis’ aggression against civilians
  • The total cost of all the projects provided by KSRelief since its establishment is $70 million

JEDDAH: King Salman Humanitarian Aid and Relief Center (KSRelief) has launched a project to provide Yemeni students and schools with supplies to ensure that education continues across the country despite the brutal acts of militants. The trucks started to carrying the aid from Riyadh to Yemen on Monday.

“It is a project to provide Yemen’s schools with the essential needs to ensure a better and smoother educational environment, such as chairs, desks, and boards, in addition to students’ supplies. It will support nearly 5,000 students across Yemen,” said Dr. Samer Aljetaily, spokesman for KSRelief.
“The trucks will arrive first in Ma’arib, then it will be distributed to the most needed areas across the country’s schools and students.”
“My Education” is one of the big projects given to support Yemen’s people in health, shelter, infrastructure, environment and education to help the country stand on its feet regardless of any devastation caused by the militants.
“The total cost of all the projects provided by KSRelief since its establishment is $70 million. In terms of education, the center has given financial aid to schools, paid teachers’ salaries, and provided students’ essential school needs and meals. We will continue supporting our brothers and sisters in Yemen in all sectors.”
This project has been supported by the Saudi Ministry of Education and the Saudi-led Islamic Military Coalition. “The coalition always supports our all initiatives in the interest of Yemeni citizens. The coalition will protect the aid till it arrives in Ma’arib, then it will support logistically to facilitate the distribution of the supplies. Education is a priority for the Saudi government and for KSRelief.
“We have always supported education in Yemen and always will, whether it is for schools, educational institutions, students, teachers, or even educational curricular and psychological support departments to help students become better amid all the horrific acts caused by the Houthis. KSRelief is very keen on building a strong future with a well-educated generation of Yemenis.”
Asked whether there is a lack of international support for Yemen, he told Arab News: “Saudi Arabia, along with the UAE, has attracted global attention to Yemen’s humanitarian status in different ways, including direct funding for the infrastructure of the country and huge support for health, education and the environment. Saudi Arabia is ranked the first donor in the world when it comes to humanitarian, financial and logistical support in Yemen. This has encouraged other countries’ support as well.
“The UAE has greatly supported the Yemen humanitarian file with $1 billion. The international community has reacted to this.
“However, there must be more international collaboration to reduce the militants’ attacks on the aid and supplies and facilitate the entry of aid and ensure a higher level of safety. There is also need for better cooperation to protect students and children in the militants’ controlled areas,” he emphasized.
“The Saudi Ministry of Education has supported this initiative by providing school supplies and students’ essential supplies.”
There are two million Yemeni children out of school because of the Houthis’ aggression against civilians.