Saudi Arabia

Saudi Arabia VAT reverse charge foreign providers

October 5th, 2018

The Saudi Arabian tax authority has published guidance on the reverse charge rules for B2B supplies provided by non-residents. As with most VAT regimes, the ‘general rule’ place of taxation for services is where consumed. The reverse charge is a VAT simplification which limits the instances where a foreign provider has to VAT register in …


Saudi Arabia

Saudi Arabia 4,700 VAT violations

April 23rd, 2018

Following the 1 January 2018 launch of 5% VAT in Saudi Arabia, over 4,700 violations have been found from 12,578 audits of businesses. The figures come from the General Authority of Zakat and Tax (GAZT). Sectors targeted included retail malls, consumer electronics, pharmacies and gold stores. Most of the non-compliance errors were failure to VAT …


Saudi Arabia

Saudi Arabia simplified VAT invoice

January 30th, 2018

The Kingdom of Saudi Arabia is relaxing the requirement to produce simplified invoices for B2C sales under the new VAT regime. Initially following the 1 January 2018 introduction of VAT, simplified VAT invoices could only be produced for all sales below Riyals 1,000.  However, the General Authority of Zakat and Tax (GAZT) now states that this is …


Saudi Arabia

Saudi Arabia removes private education from VAT

January 14th, 2018

Saudi Arabia has reclassified privately provided education as zero-rated for VAT from standard rated. The change will match the classification of non-state supplied education used in most other countries with a VAT regime. The Royal Kingdom of Saudi Arabia introduced 5% VAT on 1 January 2018, along with its partner Gulf Cooperation Council country, UAE. …


United Arab Emirates

Arab Gulf VAT live today

January 1st, 2018

Saudi Arabia and the United Arab Emirates (UAE) have today become the two latest states to impose Value Added Tax on their consumers.  From midnight, 5% VAT became due on most transactions, including between companies (but with the right to reclaim). GCC 6 states and VAT In 2016, the six members of the Gulf Cooperation Council …


Saudi Arabia

Saudi Arabia digital services VAT 2018

December 17th, 2017

The Saudi Arabian tax office, GAZT, has confirmed that the supply of digital services by non-resident providers to consumers will be subject to the new VAT regime from 1 January 2018.  This will require foreign providers of digital services to VAT register if they are over the VAT registration threshold of SR1,000,000.  However, if the …


Saudi Arabia

Saudi Arabia VAT payments

November 18th, 2017

Ahead of the launch of 5% VAT in Saudi Arabia on 1 Jan 2018, the tax office, GAZT, has provided details of how to settle monthly VAT liabilities. When a tax payer submits their VAT return, typically monthly, a payment notice is generated by the state’s payment portal (‘SADAD’). The tax payer can then settle …