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Kingdom of Saudi Arabia
Taxes in Saudi Arabia
The Kingdom of Saudi Arabia (KSA) is one of the largest countries in the GCC region with major oil reserves, focusing on the non-oil revenue the country has introduced VAT in 2018.
KSA has Corporate Tax, ZAKAT, Excise Tax, Customs duty & Real Estate Transaction Tax (RETT) other than VAT.
Value Added Taxes
Summary
KSA introduced the VAT from 1st January 2018 along with UAE in line with the GCC common VAT agreement frame work.
The threshold limits for VAT registration are:
- Mandatory registration – Annual Taxable turnover more than SAR 375,000.
- Voluntary registration – Annual Taxable turnover/expenses between SAR 187,500 and SAR 375,000.
VAT rates:
Zero rate -
- Exports of goods/services
- International transportation of goods or passenger services; and supply of qualifying means of transport
- Medicines and medical equipment
- Supply of investment grade precious metals
Exempt -
- Financial services
- Residential Real estate
Standard rate - Any supplies which are not either zero rate of exempt shall be taxable at 15% ( VAT 5% up to 30th June 2020)
VAT in KSA is administered by the Zakat, Tax and Customs Authority (ZATCA).
