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 celebrates rehabilitation of 27 child soldiers in Yemen  

Updated 20 August 2018
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KSRelief celebrates rehabilitation of 27 child soldiers in Yemen  

MARIB, Yemen: The King Salman Humanitarian Aid and Relief Center (KSRelief) held the closing ceremony of the second session of its fifth and sixth phases of the rehabilitation project of child soldiers in Yemen.

The center celebrated the rehabilitation of 27 children who were recruited by Houthi militias in Yemen from different cities across the war-torn nation. 

The child soldiers presented works of creativity in segments during the ceremony. Their presentations reflected how much they have changed during the process of rehabilitation, which lasted for an entire month. 

An exhibition also showed pictures of the social and psychological process they underwent to return to their normal lives, which would facilitate their integration back into the society. 

Marib’s deputy governor, Abed Rabbu Muftah, said the only place these children belong to is schools, as he thanked KSRelief for this humanitarian project, which aims to psychologically and educationally rehabilitate recruited and war-affected children in Yemen.