Saudi Vat Law Pdf

For information the table below compares the vat treatment of supplies made in some sectors in the ksa with that indicated by the uae s vat vat law.

Saudi vat law pdf. M 51 dated 31438 5 h. With vat applying to almost all supplies of goods or services subject to limited exceptions. Pursuant to the provisions of the unified vat agreement the kingdom of saudi arabia issued the vat law under royal decree no. Of saudi arabia ksa the unified vat agreement for the cooperation council for the unified arab states of the gulf the vat agreement was approved by ksa by a royal decree no.

8 127 2016 dated 16 1 1438h corresponding to 17 10 2016g. Saudi businesses should initiate a vat impact assessment immediately in. In this case as supply of services is outside uae i e. Kingdom of saudi arabia capital market authority regulatory rules and procedures issued pursuant to the companies law relating to listed joint stock companies english translation of the official arabic text issued by the board of the capital market authority pursuant to resolution no.

Vat is applied in more than 160 countries around the world as a reliable source of revenue for state budgets. Kingdom of saudi arabia practices the rights of sovereignty over its water the seabed the layers under the soil and natural resources pursuant to its laws and international law. Any implementing ماظنلل ةيذيفنت ةحئال يأ ةحئاللا regulations for the law. Same definition it has in other laws applicable in the kingdom provided that such definition is not inconsistent with the provisions of this law.

The government is determined to implement vat in saudi arabia on the 1st january 2018 and the release of the law is another to achieve this objective. Value added tax or vat is an indirect tax imposed on all goods and services that are bought and sold by businesses with a few exceptions. Place of supply of services supplied by a person who is not resident in the uae to a business that is resident in the uae is in the uae. Chapter two taxpayers article 2.

Vat in the kingdom of saudi arabia. Businesses operating in the kingdom need to take immediate steps to become compliant with the respective vat laws. According to article 2 and in alignment with the gcc vat framework agreement all imports into and supplies of goods and services in the ksa will be subject to vat. Value added tax vat law and draft vat regulations in the kingdom of saudi arabia july 2017 the shura council in saudi arabia has now approved the value added tax vat law ahead of its expected issue date in the official gazette.

The regulations reflect that saudi arabia has chosen a broad tax base. So reverse charge mechanism shall. Some of the key highlights are listed below. Place of supply will be ksa if the company b is tax registered as per vat law of ksa.

Persons subject to taxation a a resident capital company with respect to shares of non saudi partners.