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

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.


Nidaa Abu Ali, first secretary of the Saudi mission to the UN in New York

Updated 3 min 54 sec ago

Nidaa Abu Ali, first secretary of the Saudi mission to the UN in New York

Nidaa Abu Ali is a Saudi diplomat who is currently serving as the first secretary and member of the Kingdom’s permanent delegation to the United Nations in New York.

Abu Ali, who was born in 1983, has also worked as a journalist and researcher. She has written for prominent Saudi newspapers and authored four novels.

She began her journalism career with Al-Hayat, a pan-Arab newspaper that has been based in London since 1988 and launched its Saudi edition in 2005.  

She has held several posts at the Kingdom’s Ministry of Foreign Affairs since joining it in 2009, and was an attache at Saudi Arabia’s mission in Singapore from 2009 until 2013.

Between 2007 and 2009, she worked as a researcher and analyst at the International Center for Political Violence and Terrorism, and at the Middle East Institute of the National University of Singapore.

She received her master’s degree in 2009 in strategic studies from the city-state’s Nanyang Technological University. Her bachelor’s degree is in management information systems from Jeddah’s Dar Al-Hekma University.

Abu Ali worked at Al Eqtisadiah newspaper between 2014 and 2016, and Asharq Al-Awsat newspaper from 2016 until the present day.

At the meeting of the UN General Assembly’s Sixth Committee, she stressed the Kingdom’s support for the rule of law. She said the Kingdom agreed with member states on the importance of concerted action by the international community and the need for international cooperation based on shared responsibility.