JEDDAH: All businesses have been advised to make sure they understand the new rules on value-added tax (VAT) and be ready for their application on Jan. 1, 2018, which is in 55 days.
The General Authority of Zakat & Tax (GAZT) has urged businesses to read the regulations which can be found on the tax’s official website.
According to the rules approved by GAZT’s board, a 5 percent VAT will be imposed on most goods and services at each stage of the supply chain from production and distribution to the final sale.
The regulations also defined the goods and services that will be exempt, zero-rated and out of scope.
Activities subjected to a zero percent VAT include the supply of medicines and medical equipment specified by the Ministry of Health and the Saudi Food and Drug Authority, the supply of gold and silver for investment purposes provided they are at least 99 percent pure and tradable in the Global Bullion Market, and the export of goods to outside the Gulf Cooperation Council (GCC) region.
Goods and services exempt from VAT, according to the new rules, include financial services such as dealing in money or securities, providing credit or credit guarantee for customers, and life insurance and reinsurance contracts. The renting of residential property is also exempt from VAT.
Services provided by government agencies as public authorities, such as the issuance and renewal of passports and driving licenses, will be out of the tax’s scope.
The VAT official website (vat.gov.sa) provides tools and information that support businesses and help them prepare for the application of VAT, in addition to visual aids, registration and VAT application information, and the list of goods and services subject to VAT.
The move is in line with an International Monetary Fund (IMF) recommendation for Gulf states to impose revenue-raising measures including excise and value-added taxes to help their adjustment to lower crude oil prices, which have slowed regional growth.
It is estimated that the VAT’s imposition will raise between $7 billion and $21 billion annually — or between 0.5 percent and 1.5 percent of regional GDP (gross domestic product).
Speculations surfaced in social media about a delay in the implementation process, but Rashid Al-Fowzan head of CNBC-Arabia TV channel, has made it clear that the VAT implementation will go as planned on Jan. 1, 2018.
Abdulrahman Al-Hussain, spokesperson of the Ministry of Commerce and Investment, has warned businesses against implementing the tax before the scheduled date. He threatened them with serious consequences following concerns raised by a section of the public.
Saudi VAT enforcement: 55 days to go as businesses urged to follow new rules
Saudi VAT enforcement: 55 days to go as businesses urged to follow new rules
Saudi foreign minister takes part in GCC extraordinary meeting in Kuwait
- GCC officials reject foreign interference in Syrian affairs, call for lifting of Western sanctions
- Meeting affirms GCC’s support for Palestinian people and demands ceasefire in Gaza
RIYADH: Saudi Minister of Foreign Affairs Prince Faisal bin Farhan took part in the 46th extraordinary meeting of the Gulf Cooperation Council’s ministerial council in Kuwait on Thursday.
Ministers and officials from GCC countries discussed the latest developments in Syria, Lebanon, and Gaza.
They stressed the need to uphold Syria’s sovereignty, independence, and territorial integrity after the fall of Bashar Assad’s regime in early December.
The ministerial council rejected foreign interference in Syrian affairs and called for Western sanctions that have weakened the country’s economy to be lifted, the Saudi Press Agency reported.
They reaffirmed their support for a comprehensive transitional process that ensures civilian safety, achieves national reconciliation, and preserves state institutions.
The council condemned Israeli attacks on Syria and the plan to expand illegal settlements in the occupied Golan Heights. It also condemned Israeli strikes on Lebanon.
Officials stressed that Lebanon needs political and economic reforms to prevent it from becoming a hub for terrorism and drug smuggling, highlighting the critical role of the Lebanese security forces in addressing these issues, the SPA added.
The meeting affirmed the GCC’s support for the Palestinian people, and called for a permanent ceasefire, an end to the siege in Gaza, and the supply of humanitarian aid.
Prince Sultan bin Saad, Saudi ambassador to Kuwait, and other senior Saudi foreign officials attended the meeting.
200 students will compete to represent Saudi Arabia at top science events
- Mawhiba, Ministry of Education select students from a record 291,057 applications
RIYADH: A total of 200 students have been chosen to compete for a chance to represent the Kingdom at next year’s prestigious International Science and Engineering Fair and other international competitions.
The King Abdulaziz and His Companions Foundation for Giftedness and Creativity, or Mawhiba, and the Ministry of Education announced the qualification of the 200 students, the Saudi Press Agency reported on Thursday.
The announcement took place at the National Olympiad for Scientific Creativity, or Ibdaa, exhibition for science and engineering. The Ibdaa event is held to create a competitive and creative environment for pre-college scientific researchers.
The students were selected from among 480 participants in the recent regional exhibitions held as a part of the fourth stage of the Olympiad.
The final qualifying stage for the Olympiad will be held at the Imam Mohammad Ibn Saud Islamic University conference center in Riyadh from Feb. 2 to 6.
The Ibdaa 2025 Olympiad had a record registration of 291,057 students.
The Olympiad is an annual international contest for middle and high school students in standards and technology. It started as a local event in Korea in 2006, and became an international contest in 2014.
Beekeepers’ association launches green campaign
RIYADH: The Beekeepers Cooperative Association in Rijal Almaa in the Asir Region on Thursday launched an initiative to plant 1,000 sidr trees in Wadi Hiswah as part of an environmental sustainability plan aligning with the Saudi Green Initiative.
Inaugurated in 2021, the Saudi Green Initiative unites environmental protection, energy transition and sustainability programs with the overarching aims of offsetting and reducing emissions, increasing afforestation and land restoration, and supports Saudi Arabia’s ambition to reach net zero emissions by 2060.
The Beekeepers Association launched the green campaign in collaboration with the National Center for Vegetation Development and Combating Desertification, the Saudi Press Agency reported.
The chairman of the association’s board of directors, Ali bin Yahya Al-Hayani, said that this initiative aims to enhance air quality and combat climate change.
He identified the environmental benefits of the sidr tree, highlighting its resilience, its role in combating desertification, and its contribution to soil health and biodiversity.
Reconstituted Saudi IP authority’s board of directors approved
- Shihana Alazzaz, who is an adviser at the Royal Court, will continue to serve as chair
RIYADH: The Saudi Authority for Intellectual Property’s newly-reconstituted Board of Directors was approved for a three-year term, the Saudi Press Agency reported Wednesday.
In the reconstituted board, Shihana Alazzaz, who is an adviser at the Royal Court, will continue to serve as chair. She previously served as the deputy secretary-general of the Council of Ministers and was the first Saudi woman to hold the position.
The approval includes extending the membership of Eng. Haitham Al-Ohali, Eng. Osama Al-Zamil, and Dima Al-Yahya.
Badr Al-Qadi and Dr. Mohammed Al-Otaibi join the board as new members.
Alazzaz expressed her thanks and gratitude to King Salman and Crown Prince Mohammed bin Salman for their generous and continuous support for the authority.
She also thanked the previous board members for their efforts and wished the new members success.
The authority’s CEO Dr. Abdulaziz Al-Suwailem, said that the new formation of the board reflects the continued generous support of the leadership for the authority, wishing the Board success.
Grand Mosque authority announces free storage for Umrah performers
- Storage facilities are located near the Makkah Library and Gate 64
MAKKAH: Authorities in the holy city of Makkah announced on Wednesday free luggage storage for Umrah performers.
The General Authority for the Care of the Affairs of the Grand Mosque and the Prophet’s Mosque announced that free storage facilities are available to the east of the Grand Mosque, near the Makkah Library, and to the west, near Gate 64.
Umrah performers must present their permits through the Nusuk app to access the facilities, the Saudi Press Agency reported.
Umrah performers can store bags, not loose items, weighing up to 7 kilograms for a maximum of four hours. Valuables, prohibited items, food, and medicine are not permitted. A claim ticket must be presented for retrieval.
The authority plans to extend the service to encompass all areas around the Grand Mosque to better assist visitors, the SPA added.
