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
Busy bees: Asir’s local markets abuzz over Sidr honey season
- Unique taste, aroma make it popular locally, internationally
RIYADH: The Asir region is currently in the midst of the Sidr honey season, with local markets flooded with high-quality honey produced from the nectar of Sidr trees.
The recent heavy rainfall in the region has led to a prolific flowering of Sidr trees, providing ideal conditions for bees to produce abundant and flavorful honey, the Saudi Press Agency reported.
Sidr honey, which is renowned for its health benefits, is particularly prized for its antioxidant properties and ability to strengthen the immune system.
The unique taste and aroma of the honey have made it a sought-after commodity, both locally and internationally, the SPA reported.
Beekeepers in Tihama Asir have been busy harvesting the golden nectar, with prices ranging from SR350 to SR500 ($93-133) per kg.
The region’s diverse ecosystem, characterized by its fertile valleys and abundant flora, provides an optimal environment for beekeeping.
The Ministry of Environment, Water and Agriculture is actively supporting the development of the beekeeping industry. Initiatives such as the beekeeping and honey production development initiative improve practices, protect bee populations, and enhance the quality of honey.
By promoting sustainable beekeeping and preserving the natural habitats of bees, the Kingdom seeks to strengthen its position as a leading producer of high-quality honey while contributing to the global market.
Saudi Reef Forum to focus on rural sustainability
- Al-Ahsa event to promote communities’ role in economic growth
RIYADH: The Ministry of Environment, Water and Agriculture will host the 1st International Forum for Saudi Reef in Al-Ahsa from Dec. 16-18, aiming to strengthen rural communities, and promote their role in driving sustainable development.
Maha Aldhahi, head of the forum’s executive committee, said: “The forum is pivotal in advancing rural development, aligning with the UN Sustainable Development Goals and Saudi Vision 2030. It will support rural communities, while contributing to global efforts and research on sustainable agriculture.”
Aldhahi said that the forum will unite regional and international experts to address the challenge of rural-to-urban migration, a widespread issue. To counter this, the forum will propose practical solutions to ensure rural areas remain economically viable, vibrant, and sustainable.
Additionally, it will explore innovations in agriculture and rural development, fostering economic growth and social cohesion through job creation and investment promotion, she added.
Aldhahi said that the forum builds on the Saudi Reef Program, recognized by the UN Food and Agriculture Organization as the world’s largest development initiative of its kind.
The program has supported over 77,000 agricultural projects, achieved a self-sufficiency rate exceeding 65 percent in vital sectors, and provided upskilling and career opportunities for rural communities.
Ghassan Bakri, secretary-general of the Saudi Reef Program, said: “The program is a model of sustainable growth, addressing food security and job creation while preserving cultural heritage. By hosting this forum, we aim to attract global partnerships and exchange cutting-edge solutions for rural empowerment.”
Bakri added that the forum will feature dynamic discussions on key topics, including sustainable agricultural practices, rural entrepreneurship, and the role of modern technology in agriculture.
The three-day event will also include an exhibition showcasing unique rural practices, handicrafts, and the work of local farmers, artisans, and entrepreneurs. It will highlight how traditional techniques integrate with modern innovations to create sustainable livelihoods.
Kingdom arrests 19,696 illegals in one week
- A total of 11,336 people were arrested for violations of residency laws
Riyadh: Saudi authorities arrested 19,696 people in one week for breaching residency, work and border security regulations, the Saudi Press Agency reported on Saturday.
According to an official report, a total of 11,336 people were arrested for violations of residency laws, while 5,176 were held over illegal border crossing attempts, and a further 3,184 for labor-related issues.
The report showed that among the 1,547 people arrested for trying to enter the Kingdom illegally, 65 percent were Ethiopian, 32 percent Yemeni, and 3 percent were of other nationalities.
A further 71 people were caught trying to cross into neighboring countries, and 22 were held for involvement in transporting and harboring violators.
The Ministry of Interior said that anyone found to be facilitating illegal entry to the Kingdom, including providing transportation and shelter, could face imprisonment for a maximum of 15 years, a fine of up to SR1 million ($260,000), as well as confiscation of vehicles and property.
Suspected violations can be reported on the toll-free number 911 in the Makkah and Riyadh regions, and 999 or 996 in other regions of the Kingdom.
Gaza victims praise Saudi Arabia’s lifesaving humanitarian efforts
Riyadh: Palestinians in Gaza who received Saudi aid have expressed gratitude to the Kingdom for its humanitarian support through aid agency KSrelief.
They likened the Saudi assistance to rain that quenches their thirst for hope, alleviates suffering and rekindles optimism amid immense challenges, the Saudi Press Agency reported.
Samaher Eid Awkal, 47, said she struggled with health issues while living in Khan Younis with her blind mother in a basic tent. She thanked KSrelief for providing her family with a suitable tent, which has eased their hardship and restored hope.
A Gaza mother who endured freezing conditions with her children without shelter also expressed appreciation after receiving essential aid. She described the support as a source of joy and hope during difficult times.
Mahmoud Nabil Abu Alwan, displaced from Rafah to Mawasi in Khan Younis, thanked KSrelief after he received a new tent. He previously lived in a dilapidated tent borrowed from relatives amid shelling and harsh displacement conditions.
Saudi Orchestra performance in Tokyo helps ‘bridge cultural boundaries,’ CEO says
TOKYO: The Saudi National Orchestra’s performance in Tokyo is “bridging cultural boundaries” as part of Vision 2030, the CEO of the Kingdom’s top music body has said.
Paul Pacifico, CEO of the Saudi Music Commission, added that music has a “very important part to play in each of the three main pillars of Vision 2030” as it represents a proud nation, a vibrant society and diversified economy.
Bringing the Saudi National Orchestra to Tokyo has given people the opportunity “to communicate with our language and it allows everybody to come together and share an experience that allows us to appreciate each other’s cultures, and really to be in harmony,” Pacifico said.
“And that’s why I think it’s so special that the orchestra is here for the first time.”
The program for the performance last night included traditional music directed by Saudi director Reab Ahmed, as well as the Japanese Imperial Court Orchestra “Gagaku.”
Pacifico said: “We’re able to show Saudi culture on one of the most prestigious stages in one of the world’s great cultural capitals here at Tokyo Opera City, and we’re doing that with authentic Saudi music, and authentic traditional Japanese music with Gagaku.
“But also with that great fusion between the two sets of musicians coming together and doing something really unique and beautiful.
“The Saudi National Orchestra and choir is really at the vanguard of developing the music landscape in Saudi Arabia as it builds the depth and richness and uniqueness of its beautiful culture, both traditional and modern.”
Pacifico said it was “an honor” to share the stage with the Japanese Imperial Orchestra performers. “It also shows how our cultures are different and yet similar: The regard for tradition and modernity, the appreciation of music, the sense of formality in public, but warmth and a sense of fun as well in private.”
He hoped that Friday’s performance was not a one-off but the foundation of a rich and longstanding collaboration with “our Japanese friends, the Tokyo College of Music, who we’re collaborating with on this concert.
“We hope that Saudi artists will start to have opportunities to play on stages here in Tokyo, like the Blue Note and Billboard Live and the Cotton Club, or festivals like Summer Sonic or Fuji Rock. And equally, we’d love to see Japanese artists playing more in Riyadh and all over the Kingdom of Saudi Arabia.
“Saudi Arabia has a very exciting story to tell.”
