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
Kuwait’s crown prince meets foreign ministers from Saudi Arabia and other GCC nations
- Meeting takes place on sidelines of 46th extraordinary meeting of GCC’s Ministerial Council, during which ministers discuss developments in Syria, Lebanon and Gaza
RIYADH: The crown prince of Kuwait, Sheikh Sabah Khaled Al-Hamad Al-Sabah, met the Saudi minister of foreign affairs, Prince Faisal bin Farhan, and the foreign ministers of other Gulf Cooperation Council member states at Bayan Palace in Kuwait City on Thursday
The meeting took place on the sidelines of the 46th extraordinary meeting of the GCC’s Ministerial Council, during which ministers and other officials discussed the latest developments in Syria, Lebanon and Gaza.
They stressed the need to uphold Syria’s sovereignty and territorial integrity in the aftermath of the fall of President Bashar Assad’s regime this month, and condemned Israeli authorities for their attacks against Syria and Lebanon.
They also affirmed the GCC’s support for the Palestinian people and called for a permanent ceasefire in Gaza.
Makkah’s cultural gem offers journey through history and faith
- Hira Cultural District has books, gifts and special cuisine
- ‘Revelation Exhibition’ focuses on messages to prophets
MAKKAH: As winter arrives, the Hira Cultural District in Makkah, a landmark destination combining history, knowledge and services for tourists, has emerged as a hub for residents and visitors seeking cultural and recreational experiences.
At the heart of the district lies the “Revelation Exhibition,” which vividly narrates the story of divine messages to the prophets. It features a section focused on the life of Prophet Muhammad and the significance of Hira Mountain.
Using cutting-edge audiovisual technology, the exhibition is an immersive and enriching journey through Islamic history, the Saudi Press Agency reported.
The district’s cultural library offers a treasure trove of information on the history of Makkah and Madinah, the life of the prophet, and the legacy of Hira Mountain and its surrounding areas.
This knowledge can be explored through books, scientific references, and interactive displays.
Beyond its historical and educational appeal, the cultural district constitutes a vibrant destination for leisure and commerce.
Restaurants and cafes serve a mix of local dishes inspired by Makkah’s heritage alongside international cuisine, while shops offer unique gifts and souvenirs reflecting the district's identity.
The Saudi Coffee Museum adds a distinctive flavor to the experience. Here guests can savor traditional Saudi coffee while learning about its regional variations and preparation methods.
For those seeking adventure, the district provides access to the Cave of Hira via a specially paved pathway, allowing visitors to connect with the site’s spiritual and historical significance.
A visitors’ center provides comprehensive information on the district’s features, services and cultural offerings.
Saudi attorney general holds talks with Turkish counterpart in Makkah
MAKKAH: Saudi Arabia’s attorney general, Sheikh Saud bin Abdullah Al-Mujib, praised the strong relationship between the Kingdom and Turkiye as he welcomed a delegation led by his Turkish counterpart, Muhsin Senturk, to Makkah on Thursday.
The officials discussed legal collaborations between their nations and affirmed their desire to enhance judicial cooperation to serve common interests, the Saudi Press Agency reported.
Indulge in the magical wizarding World of Harry Potter at Riyadh Season
- The pop-up experience offers fans of all ages an immersive opportunity to step into the magical universe of witches, wizards and muggles
RIYADH: Harry Potter: A Riyadh Season Adventure is one of the many enthralling and enchanting experiences on offer at Riyadh Season this year.
The pop-up experience, brought to life by Warner Bros., offers fans of all ages an immersive opportunity to step into the magical universe of witches, wizards and muggles.
Set in the vibrant Boulevard City, the area is designed to showcase some of the most iconic locations from the beloved film series, such as Hogwarts and others.
Interactive technology plays a significant role in the experience. Guests can take part in a Great Hall Sorting Experience, where they find out which Hogwarts house they belong to, and engage in Quidditch activities, as well as practice their Quaffle skills on the pitch.
There is also a zone where visitors can try wands and cast magical words they learned from the film series, like “Expecto Patronum.”
For those looking to take a piece of the magic home, the Wizarding World Shops offer exclusive merchandise, ranging from wands to house scarves, and the Three Broomsticks Food Hall offers refreshing drinks, cupcakes and other desserts.
Costumes are a big part of the fun experience, and there is a dedicated area for shopping, ensuring that everyone can find the perfect outfit to enhance their visit.
Maram Al-Ruwaili, a passionate fan dressed as a Slytherin, shared her excitement: “I’ve been a Potterhead since 2003. Now at 31, I still consider myself a big fan. I’ve tried one Harry Potter experience before, but not in Saudi Arabia.
“This time, sitting in the Great Hall, surrounded by sound effects from the films, made it feel like we were true Hogwarts students. The atmosphere, especially with the Dementors and Christmas sounds, was magical.”
The event has attracted a diverse crowd, including international visitors.
Nanditha Krishnakumar, an enthusiastic attendee from India, expressed her love for the experience: “I’ve adored Harry Potter since childhood, and this is truly amazing. It feels so lifelike and brings my dreams to life. I love Slytherin; it might seem like an evil house, but it’s one of my favorites. I can’t wait to see what else is in store.”
Aisleen de Asis, a nurse who has lived in Saudi Arabia for almost a decade, shared her perspective: “Harry Potter is a significant part of my childhood. I heard about this experience from friends and colleagues who enjoyed it, and I had to check it out myself. Being here brings back so many nostalgic memories.”
The Harry Potter experience at Riyadh Season also celebrates community and shared passion.
Fans from various backgrounds are coming together to relive the magic of their childhood, creating connections through their love for the series.
The excitement is palpable, as visitors share their stories, dress up as their favorite characters, and take part in the interactive activities that bring the magic of the books and films to life.
Whether you are a longtime fan or new to the series, the magical experience is not to be missed.
Misk Foundation celebrates NGO graduates
RIYADH: The Mohammed bin Salman Foundation, also known as Misk, celebrated the graduation of the fourth cohort of the Misk Initiatives Incubator and Impact Accelerator programs at a ceremony held recently at Mohammed bin Salman Nonprofit City in Riyadh.
Minister of Communications and Information Technology Abdullah Al-Swaha and Misk Foundation CEO Badr Al-Badr, along with representatives of government agencies, NGOs and donors, attended the ceremony.
During the event, 11 youth initiatives were transformed into nonprofit organizations with the support of the Misk Initiatives Incubator program. Four NGOs were empowered through the Impact Accelerator program, contributing to achieving the objectives of the nonprofit sector and enhancing the role of young people in development.
Fifteen NGOs took part in the two programs, benefiting 177 people. They were provided with more than 2,000 hours of mentorship and financial grants exceeding SR7 million ($1.86 million) to support the implementation of projects serving young people. The ceremony also featured inspiring success stories, highlighting future projects aimed at amplifying social impact.
