Posted by : Aahil Shaik Tuesday, June 30, 2020
Saudi Arabia to collect VAT of 15% (Increased from 5%) from 1st July 2020
Saudi Arabia to collect Value Added Tax (VAT) of 15% from 1st July 2020, tripling from the current 5% VAT. The hike in VAT is to protect the health care and livelihoods of Saudi Arabians said Finance Minister at the time of its announcement. Most Viewed : Saudi Arabia roads decorated with "Thank You our Heroes"
VAT (Value Added Tax) :
Value Added Tax (VAT) is a indirect tax charged on the sale of goods or services, mostly it will be included in the final sales price or MRP of products paid by the customers.
- The announcement of 15% VAT came in mid-May after the wave of enormous cost cutting programs to help counter the unprecedented economic fallout due to the corona virus pandemic. Recommend : 350 trips between Riyadh and Dammam in 1 week
- The importance of the measure undertaken in order to protect the Saudi economy and overcome the unprecedented financial and economic ramifications of the global corona virus pandemic in the possible best way, stressing that these measures complement previously made decisions to reduce the negative effects of crisis from a health perspective as well as economically and socially.
- The measures taken of VAT, even if there is pain, they are necessary and will be beneficial to maintain financial and economic stability from a comprehensive perspective and in medium and long term in the interest of the country and its people said the Finance Minister earlier while introducing it. Read : Ministry of Tourism targets 260,000 jobs in 3 years in Saudi Arabia
The VAT increase “is something that will help this year, but will help more next year and the year after as we get out of the COVID-19 crisis,” the minister said.