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.


Saudi foreign minister calls for ‘transparent and independent’ Beirut explosion investigation

Updated 12 min 30 sec ago

Saudi foreign minister calls for ‘transparent and independent’ Beirut explosion investigation

  • Prince Faisal bin Farhan told an emergency donors conference that Saudi Arabia stands with Lebanon
  • Minister condemns 'destructive hegemony' of Hezbollah, which has history of storing explosive materials among civilians

RIYADH: Saudi Arabia called for a transparent and independent investigation into the Beirut explosion, the Kingdom’s foreign minister said on Sunday.
Prince Faisal bin Farhan told an emergency donors conference that Saudi Arabia stands with Lebanon. He described the explosion that killed more than 150 people as “horrific.”

Prince Faisal said strong state institutions that work for the interests of the Lebanese people are vital to the reform required to guarantee Lebanon's political and economic future.
“The continued destructive hegemony of the terrorist organization Hezbollah worries us all, and we all know this organization’s history of using explosive materials and storing them among civilians in several Arab and European countries and in north and south America.”
“Lebanon is in dire need of comprehensive and urgent political and economic reform to ensure that this terrible disaster will not occur again,” he said.

He added that four planes carrying Saudi aid have arrived in Beirut.
The King Salman Humanitarian Aid and Relief Center (KSRelief) has provided 290 tons of medical equipment, food supplies and housing materials.

The conference was hosted by French President Emmanuel Macron.