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
0

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.


Saudi Civil Aviation Authority to introduce airport projects at Bahrain airshow

Models of Saudi Royal Air Force fighter jets are seen during the Dubai Airshow on November 12, 2017, in the United Arab Emirates. (AFP)
Updated 13 November 2018
0

Saudi Civil Aviation Authority to introduce airport projects at Bahrain airshow

  • “GACA will highlight at its pavilion the latest developments in the air transport industry in the Kingdom,” said Al-Obailan

JEDDAH: The General Authority of Civil Aviation (GACA) will introduce various investments and projects in the construction, developments and modernization of airports in the Kingdom when it leads the Saudi delegation at the fifth Bahrain International Airshow 2018.
“GACA and a number of national companies affiliated with civil aviation will participate in the 5th edition of Bahrain International Airshow from Nov. 14 to 16 at Alsakhir Air Base,” said Talal Al-Obailan, GACA's communications chief.
“GACA will highlight at its pavilion the latest developments in the air transport industry in the Kingdom,” said Al-Obailan.
“These include the new King Abdul Aziz International Airport project, besides a number of projects implemented by GACA.” Those projects vary from protecting customers' rights to raising the level of services at Saudi airports to the highest international standards, he said.