VAT in Saudi Arabia
What You Need to Know
Saudi Arabia introduced Value Added Tax (VAT) at a 5% rate on January 1, 2018. To address financial and economic challenges, the rate was increased to 15% on July 1, 2020, as announced by ZATCA (Zakat, Tax, and Customs Authority). The change included transitional rules to guide businesses on tax liabilities for ongoing contracts and special cases. Certain goods and services remain zero-rated, taxed at 0%.
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