Posted by : Aahil Shaik Wednesday, November 8, 2017
SAUDI ARABIA TO CHARGE 5% VAT ON MONEY TRANSFER FEE
General Authority of Zakat and Tax (GAZT) confirmed that there is a VAT (Value Added Tax) of 5% on Money Transfers starting from 1st January of 2018 in Saudi Arabia, Before you start calculating five percent of your transfer money read below.
The Good news is that 5% of VAT is not on the transfer amount you are sending, but It is on the transfer fee, however it should be paid by the person who are sending money transfer clarified General Authority of Zakat and Tax.
- There are many transactions which are exempt from five percent VAT, It includes Interest on Loans, Lending fees with implicit margin like credit cards, mortgages, leasing, transactions of money and securities and as well as savings, current and deposit accounts reported Saudi Gazette.
- Insurance policies, Medicines, House Rents, Government Services fee, employees salaries are exempted from Value Added Tax confirmed by the General Authority of Zakat and Tax earlier.
- 5% of VAT is also not applicable on services like Issuance of Driving License, Renewal of Driving License and Passport services.
- Similarly there will be no VAT on exports to countries outside the GCC (Gulf Cooperation Council) states, Services given to non residents of GCC countries, International transport services for goods and passengers, Spare parts import and international transport and maintenance, repair and modifications.