Michaela Merz

Kingdom of Saudi Arabia : English translation of VAT regulations

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In concert with other Gulf Cooperation Council (GCC) countries, the Kingdom of Saudi Arabia (KSA) is implementing Value Added Tax (VAT) on January 1st, 2018.

The GCC Framework Agreement, known fully as The Unified VAT Agreement for The Cooperation Council for the Arab States of the Gulf, sets out the agreed upon VAT principles and framework across the GCC Member States. On the basis of the Agreement, KSA has prepared primary domestic legislation, the KSA VAT law, which was under public consultation from 29th May till 29th June. The KSA VAT draft law can be accessed HERE.

 

The KSA VAT law is accompanied by the Implementing Regulations. These expand on the areas covered within the KSA VAT Law, laying down rules for implementation, and giving taxpayers sufficient information to complete their VAT compliance activities.

The Implementing Regulations mainly cover the scope of taxation (exemption or zero-rated status) for certain goods and services in selected industries, registration rules, VAT grouping, date and place of supply, imports and exports, the treatment of used goods, input tax deductions and the review and appeals processes.

The Implementing Regulations are planned to be supported by a number of user guides to ease the job of the taxpayers in understanding and interpreting the Law and Implementing Regulations. In addition, GAZT may pass a number of advanced rulings setting precedent for treatment of certain business cases with regards to VAT.

For further information please click HERE.

If you have any questions, please do not hesitate to contact Nassim Tanouti on +971 566 816 561 or nassim.tanouti@pwc.com.

 

Bildquelle: Tim Reckmann  / pixelio.de

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