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
From Genoa to Jeddah: Italian vessel docks to grand welcome
- The 33rd stop of Amerigo Vespucci’s world tour brings Italian charm and heritage to Saudi Arabia
- Italian Minister of Defense Guido Crosetto: We are very proud of this ship, and we are happy to share our journey with our Saudi friends
JEDDAH: The Amerigo Vespucci, a historic training ship of the Italian Navy, docked at the Jeddah Yacht Club and Marina on Monday morning, where it will be open to the public until Jan. 30.
The ship is on the 33rd stage of its two-year world tour, which began on July 1, 2023, from the Port of Genoa, Italy, traversing five continents, 30 counties and 35 ports before its return to the Mediterranean.
The ship is named in honor of Amerigo Vespucci, the Italian explorer from the late 15th and early 16th centuries. Vespucci was among the first to understand that the lands Christopher Columbus reached in 1492 were not part of Asia but rather a separate continent, which was later named America in his honor by the German cartographer Martin Waldseemuller in 1507.
The inaugural ceremony of the Villaggio Italy in Jeddah, which also kicked off visits on board the 93-year-old ship, took place in the presence of Saudi Assistant Minister of Defense Talal bin Abdullah Al-Otaibi, as well as Italian Minister of Defense Guido Crosetto and Chief of Staff of the Navy Adm. Enrico Credendino.
Also present at the ceremony were Ambassador of Italy to Saudi Arabia Carlo Baldocci; Minister of Tourism Daniela Santanche; Minister for Disabilities Alessandra Locatelli; Deputy Minister for Enterprise and Made in Italy Valentino Valentini; Undersecretary of State for Defense Matteo Perego di Cremnago; Undersecretary of State for Defense Isabella Rauti; and Consul General of Italy in Jeddah Leonardo Costa.
Marking the latest stop on the ship’s world tour, Crosetto said: “This is not an easy ship because it did not rely on modern technology but relied on human skills.
“We are very proud of this ship, and we are happy to share our journey with our Saudi friends.”
He paid tribute to the long friendship between the Saudi and Italian people: “This is a testament (to) the growing relationship between the two countries, the growing ties in the fields of politics and diplomacy, economics, security and defense, culture, science, sports and much more.”
Al-Otaibi welcomed the Amerigo Vespucci to Jeddah and expressed Saudi Arabia’s appreciation for this gesture, acknowledging the significance of the event in promoting peace, security, and cooperation.
He noted that the arrival of the ship underscores the commitment of both nations to expanding their naval partnership and reflects a broader effort to enhance diplomatic and military ties.
Speaking to Arab News, Costa said: “The Amerigo Vespucci’s visit to Jeddah reflects the enduring friendship between our nations. We are honored to share Italy’s naval legacy with the people of Saudi Arabia.
“It is not only that we are sharing the arrival of the Amerigo Vespucci ship but we (are) also sharing our culture, art, music, food and history at the Italian Village, which will be open to (the) public starting Tuesday,” he added. “Therefore, I encourage everyone to take advantage of this unique chance to step aboard one of the world’s most iconic ships.”
After 19 months on board the Amerigo Vespucci, Capt. Giuseppe Lai, commander of the ship, told Arab News that it has been a challenging journey: “We are so proud to reach our 33rd stage here in Jeddah for the first time.
“We are very proud to show the value and history of Italy, but at the same (time), we are pleased to learn more about other cultures and know other people.”
He noted that the ship is scheduled to complete the tour on June 10.
Following stops in Los Angeles, Tokyo, Darwin, Singapore, Mumbai, Doha, Oman and Abu Dhabi, the Villaggio Italia will be hosted, together with the Amerigo Vespucci, at the Jeddah Yacht Club and Marina.
Villaggio Italia is an international exposition showcasing Italy’s finest products and industries, reinforcing the country’s values and promoting its culture globally.
As part of its Jeddah stopover on an ongoing world tour, the 1930-built ship is hosting a series of engaging events including a painting competition, film screenings, and a concert by the Italian Air Force band.
On-board visits will be available from 2:30 p.m. to 5:30 p.m. on Tuesday and Wednesday, as well as a morning slot from 9:30 a.m. to 12:30 p.m. on Wednesday.
Umrah guests praise Kingdom’s rich heritage
- Sheikh Khadem Mbaki, a preacher from Senegal, expressed his joy at witnessing Madinah’s rich cultural and historical heritage
- Ali Coulibaly from Mali said that the Kingdom is a global religious and cultural destination
RIYADH: Guests of the Custodian of the Two Holy Mosques Program for Umrah and Visit praised Saudi Arabia’s development and progress across various fields.
They commended efforts to preserve religious sites and historical monuments, highlighting a rich cultural heritage spanning thousands of years, the Saudi Press Agency reported.
During their tour of religious sites and monuments in Madinah, part of a program organized by the Ministry of Islamic Affairs, they expressed gratitude to the Kingdom for hosting them.
Sheikh Khadem Mbaki, a preacher from Senegal, expressed his joy at witnessing Madinah’s rich cultural and historical heritage.
He highlighted how the sites reflect various aspects of Islamic civilization, and praised the Kingdom’s dedication to preserving these important landmarks.
Mbaki also acknowledged the Kingdom’s efforts to ensure the well-being of visitors and Umrah performers from around the world.
Ali Coulibaly from Mali said that the Kingdom is a global religious and cultural destination due to its many historical monuments and archaeological sites in regions like AlUla and NEOM.
He also noted the rapid development of infrastructure projects, which enhance the Kingdom’s ability to welcome tourists and visitors and provide year-round access to these historical and cultural sites.
Mohammed Abdo Abu Yaali from Morocco praised the cultural and historical richness he experienced during his visit to Madinah’s historical sites.
He appreciated the in-depth explanations about the significance of these sites as well as their connection to Islamic history and the life of the Prophet.
Amin Baddad from Algeria expressed his heartfelt thanks to the Saudi leadership for hosting him to visit Madinah and perform Umrah.
He shared the beautiful memories created during his visit and prayed to Allah to reward those responsible for the program for their efforts.
Riyadh governor receives newly appointed ambassador of Zimbabwe
- Prince Faisal wished the ambassador success in his new duties
RIYADH: Riyadh Gov. Prince Faisal bin Bandar received the newly appointed ambassador of Zimbabwe to the Kingdom, Jonathan Wutawunashe, in Riyadh on Monday.
During the meeting, Prince Faisal wished the ambassador success in his new duties. The two sides also discussed issues of common interest, the Saudi Press Agency reported.
Meanwhile, Hail Gov. Prince Abdulaziz bin Saad bin Abdulaziz held cordial talks with Ambassador of Sudan to the Kingdom Dafallah Al-Haj Ali Othman in Hail on Monday.
Saudi FM holds phone call with Malaysian counterpart
RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan held a phone call on Monday with his Malaysian counterpart, Dato’ Seri Utama Haji Mohamad bin Haji Hasan.
During the call, the chief diplomats discussed relations between Riyadh and Kuala Lumpur, the Saudi Press Agency reported.
Outgoing US ambassador praises transformation in Saudi Arabia
- Ambassadors from the US, Egypt and Oman bid farewell to the Kingdom
- Dean of the diplomatic corps hosts farewell ceremony for outgoing envoys
RIYADH: The dean of the diplomatic corps accredited to Saudi Arabia, Dya-Eddine Said Bamakhrama, hosted a farewell ceremony for outgoing ambassadors of the United States, Egypt and Oman at the Cultural Palace in Riyadh on Monday.
“We have gathered here for ambassador of Egypt, Ahmed Farouk, ambassador of Oman, Sayyid Faisal bin Turki, and the US ambassador Michael Ratney. The meeting marks the conclusion of their tenure as ambassador to Saudi Arabia. We have them here representing three continents, Africa, Asia and America,” Bamakhrama said in his opening remarks.
“All of them were very close to me and to many of our colleagues. Ambassador Farouk was here for more than five years, which is extraordinary for an Egyptian ambassador. Sayyid Faisal was my neighbor in the DQ (diplomatic quarter) and we had a great time. Michael has been here for two years. I wish them all the very best in their future endeavors. We will miss you, and wishing you all the best,” said Bamakhrama, who is also Djibouti’s ambassador in Riyadh.
On behalf of the diplomatic corps Bamakhrama presented souvenirs to the outgoing ambassadors.
At the same event he introduced new ambassadors in Riyadh from Romania, Serbia, Sierra Leone, Bangladesh, Sri Lanka, Nepal, Syria, Palestine, Peru and Uruguay.
Ratney, in his farewell speech, said: “I wish I were staying in this country longer. It’s been, for me, an amazing experience to have a front row seat for what’s going on in Saudi Arabia, the amazing transformations of this country. And to have played even a small part in strengthening the relationship between Saudi Arabia and my country was an honor.
“Saudi Arabia is a country of tribes,” he said. “I feel like you are my tribe. Every time I walk in this room or one of your homes or an event, I feel like I am home. And I tell you, when I got to the country and started meeting the diplomats, I remarked that the quality of diplomats that all of your governments were sending to Saudi Arabia was extraordinary. And I thought, I need to step up my game. You all gave me a standard to try to meet, and it’s been just an extraordinary pleasure every time I am with you. I will miss all of you. I hope this is the end of my 34-year diplomatic career, and it’s time to move on.”
Farouk at the gathering said: “Thank you all for convening all our distinguished colleagues here. I have mixed feelings after 40 years of diplomacy since 1985. This is the end of my diplomatic career, and I believe that life has to come to a crossroads sometime.”
On a lighter note he added that sometimes there is a chance to make a U-turn and come back.
“I am glad, and I feel that I have achieved something for my country in Saudi Arabia,” he said. “I wish you all the best and wish the very best in your future endeavors, we will be in touch.”
Bin Turki said: “Just like my colleagues, I think, I definitely have mixed feelings. As a non-diplomat, I joined the ministry of foreign affairs in 2017. I never thought I would be appointed as an ambassador, but I ended up being an ambassador. And the first thing I had in mind when I came here, I said I wish they would give ambassadors a manual, the do’s and don’ts, but it doesn’t happen.
“For someone who is not coming from that background it’s quite a challenge. And the first thing I told my team when I walked into the embassy, I said, I have two options: I either become a classic ambassador, or someone who thinks out of the box. And I said, you will be teaching me everything that you are good at as diplomats, and I will be sharing with you everything that I know as a non-diplomat. And now I am the new diplomat. And it has been an extraordinary journey in this country, an amazing place. Four years, and it feels like yesterday.
“I keep telling people about the amazing things that are happening in Saudi Arabia and the amazing people that I meet every day. It’s a journey and I would like to thank everyone, the dean of diplomatic corps, all of you extraordinary people. I learned a lot and back home, I would love to share those stories, whether it’s with family and others as well.”
