Saudi Arabia’s VAT implementing regulations defined

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

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 Arabia’s first COVID-19 vaccine set for clinical trials

Saudi Arabia’s first COVID-19 vaccine set for clinical trials
Updated 16 January 2021

Saudi Arabia’s first COVID-19 vaccine set for clinical trials

Saudi Arabia’s first COVID-19 vaccine set for clinical trials
  • It will go through rigorous testing and several trial stages before it is approved for use by the Saudi Food and Drug Authority

RIYADH: Preclinical studies on the first Saudi vaccine against COVID-19 have been completed.

Professor of epidemiology Dr. Iman Almansour, who heads the team of researchers working on the vaccine at the Institute for Research and Medical Consultations (IRMC), affiliated with Imam Abdulrahman Bin Faisal University (IAU), confirmed to Arab News on Friday that the studies were complete, and said clinical trials would begin as soon as “the proper approvals” had been given.

She did not specify when that is expected to happen.

The Ministry of Education is financing the team’s project. The team’s research paper has been published in the peer-reviewed journal Pharmaceuticals.

The vaccine is given to the body to build protein inside cells, which stimulate the body to produce immunity specific to the S antigen.

Dr. Iman Almansour, professor of epidemiology

According to the published paper, the vaccine has so far proven effective, when used on animals, in eliciting antibodies that will target the virus. “The vaccine is given to the body to build protein inside cells, which stimulate the body to produce immunity specific to the S antigen,” Dr. Almansour explained.

Dr. Turki Almugaiteeb, director of Healthcare and Life Sciences at RPD Innovations, which runs the National Vaccine and Biomanufacturing Center, told Arab News: “There is a great focus on the results of medical research because of the pandemic. Research can play a great role in developing a vaccine that can be adopted and further developed in the future. We can say that the Kingdom has a strong infrastructure, which can help produce and manufacture a national vaccine.”

Both Almugaiteeb and Almansour stressed that the experimental vaccine will need to go through rigorous testing and several trial stages before it is approved for use by the Saudi Food and Drug Authority.

Prof. Nasser Al-Aqeeli, the deputy minister of education for research and innovation, said the ministry supported programs at the Kingdom’s universities with more than SR500 million ($133.3 million) in 2020.