Posted by : Aahil Shaik Friday, October 20, 2017
5 PERCENT OF VAT ON PRIVATE SCHOOLS FEE, ELECTRICITY BILLS, WATER BILLS & MOBILE BILLS
Value Added Tax of five percent is to be levied in Saudi Arabia from 1st January on private school fees, electricity bills, water bills and mobile bills said the General Authority for Zakat and Tax (GAZT) of the Kingdom. Trending : No VAT on housing rents & government services
However, It is unclear that who will pay the 5% VAT on private school fees, whether it is by the students family or the private schools, as per the current term Value Added Tax will be imposed on fees of the private schools. Related : No VAT on salaries of employees
- Regarding 5% of VAT on mobile bills, It will be applicable on prepaid phone cards, recharge cards, internet cards, repair and maintenance services.
- Similarly five percent of Value Added Tax will also applicable on online transactions, used car transactions, unconstructed land transactions, consultancy and engineering services. Similar : 100% tax on tobacco products and energy drinks
- Last week authorities of the Kingdom has cleared that the VAT of 5 percent is not applicable on employees salaries, housing rents and government services.