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.


FaceOf: Gen. Fayyad bin Hamed Al-Ruwaili, Saudi military chief of staff

Gen. Fayyad bin Hamed Al-Ruwaili
Updated 20 June 2018
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FaceOf: Gen. Fayyad bin Hamed Al-Ruwaili, Saudi military chief of staff

The military Chief of Staff of Saudi Arabia, Gen. Fayyad bin Hamed Al-Ruwaili, relayed Eid Al-Fitr greetings from King Salman and Crown Prince Mohammed bin Salman to members of the armed forces in the southern region.

Al-Ruwaili visited Prince Sultan Medical Military City in Riyadh to check on the wounded soldiers and relay the king's Eid greetings as well as his appreciation of their love for their country and the sacrifices they have made for the safety of the Kingdom.

Al-Ruwaili became Saudi Arabia’s chief of staff in February 2018 after the retirement of Gen. Abdulrahman Al-Bunayan.

Al-Ruwaili was born in Turaif, a small town in the Northern Borders region, in 1958. He went to school there, completing high school in Arar, then joined King Faisal Air Academy in Riyadh where he graduated as lieutenant pilot.

After that, he received a scholarship and traveled to the US to complete his flight training at Lakeland in Florida. He did a master’s in military science from Air Command and Staff College, and earned a second master’s degree in strategic studies from the US Air University in Alabama.

He returned to the Kingdom, and worked on several air military bases until he became a squadron commander and then a wing commander. He was an assistant at the air base in Taif, before he became commander of King Fahd Air Base in the western sector of Taif.

In 2012, Al-Ruwaili was appointed as commander of the Air Force, before King Salman issued the royal decree that promoted him to the rank of General Officer and made him the Kingdom’s chief of staff.