<\/p>\n
Kingdom Of Saudi Arabia (KSA) announced an increase of Value Added Tax (VAT) from 5% to 15% which came into effect from 1 July 2020.<\/p>\n
This was a major rate increase and one of the fiscal actions taken by Saudi Arabia Government to alleviate the negative effects of the global pandemic COVID-19 and other macro-economic developments on public finance. The VAT increased rate was applied to all supplies of services and goods.[\/vc_column_text][\/vc_column][\/vc_row][vc_row title=”BOOK A FREE CONSULTATION” style=”3d” gradient_color_1=”turquoise” gradient_color_2=”blue” gradient_custom_color_1=”#dd3333″ gradient_custom_color_2=”#eeee22″ gradient_text_color=”#ffffff” custom_background=”#ededed” custom_text=”#666666″ outline_custom_color=”#666666″ outline_custom_hover_background=”#666666″ outline_custom_hover_text=”#ffffff” shape=”rounded” color=”grey” size=”md” align=”center” button_block=”” add_icon=”true” i_align=”right” i_type=”typicons” i_icon_fontawesome=”fas fa-adjust” i_icon_openiconic=”vc-oi vc-oi-dial” i_icon_typicons=”typcn typcn-chevron-right” i_icon_entypo=”entypo-icon entypo-icon-note” i_icon_linecons=”vc_li vc_li-heart” i_icon_monosocial=”vc-mono vc-mono-fivehundredpx” i_icon_material=”vc-material vc-material-cake” i_icon_pixelicons=”vc_pixel_icon vc_pixel_icon-alert” custom_onclick=”” link=”url:%2Fcontact-us%2F” custom_onclick_code=””][vc_column][vc_btn title=”BOOK A FREE CONSULTATION” style=”3d” align=”center” i_align=”right” i_type=”typicons” i_icon_typicons=”typcn typcn-chevron-right” add_icon=”true” link=”url:%2Fcontact-us%2F”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]As a result, all KSA companies and corporate groups holding an entity within their KSA structure had to study the effect of VAT rate increase and the impact on their business overall.\u00a0Areas to examine carefully when such Tax or VAT changes occur include the following:\u00a0<\/strong><\/p>\n <\/p>\n Those supplies of goods and services that are subject to 0% VAT are known as zero-rated supplies. In contrast to exempt items, zero-rated supplies allow suppliers to request an input tax return.<\/p>\n <\/p>\n The following products are regarded as zero-rated and hence qualify for a VAT refund:<\/strong><\/p>\n <\/p>\n The GCC VAT Framework Agreement currently consists of the 6 GCC countries \/ 6 member states and specifies 5% VAT rate. To date the 5% VAT rate has been rolled out and implemented by 3 countries including: the United Arab Emirates, the Kingdom of Saudi Arabia, and Bahrain. Within KSA VAT<\/a> Law or its Implementing Regulations it does not include or reference to the 5% VAT rate. Therefore, the GCC VAT Framework Agreement can only be amended by agreement of all the 6 GCC countries.<\/p>\n The United Arab Emirates Ministry of Finance has announced that it has no plans to follow the Kingdom of Saudi Arabia by increasing its current VAT rate. Younis Haji Al Khoori, undersecretary of the UAE\u2019s Ministry of Finance has confirmed that UAE\u2019s VAT rate is to remain the same. He further mentioned that the Ministry of Finance are studying their financial systems to ensure their readiness to manage the next stage and support all vital sectors.<\/p>\n The ministry is devising several programs and projects to enhance their ability to continue the development process and to put people as their top priority. This is essential to build a secure future and achieve the well-being and stability of the UAE.<\/p>\n This is reassuring to many and displays the UAE\u2019s efforts to support its people.<\/p>\n <\/p>\n Issues such as cashflow management, system amendments and transitional treatment of taxable transactions are all items that should be on every affected business\u2019s agenda.<\/p>\n If your company needs any assistance regarding VAT or TAX in the UAE or Saudi Arabia, the corporate structuring and tax advisory experts at Creation tax consultants<\/a> would be delighted to assist you through some of the options available to minimise the disruption to the company\u2019s operations. To reserve your free consultation visit our website\u00a0www.creationbc.com<\/a>\u00a0email\u00a0info@creationbc.com<\/a> or call +966 54 511 2494<\/a>[\/vc_column_text][vc_empty_space][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/5″][vc_single_image image=”12267″ alignment=”center” style=”vc_box_circle_2″ onclick=”custom_link” link=”https:\/\/www.creationbc.com\/scott-cairns\/”][\/vc_column][vc_column width=”1\/5″][vc_column_text]Scott Cairns,<\/strong> [vc_row][vc_column][vc_column_text] This article was updated on July 6th, 2023 [\/vc_column_text][vc_column_text] This article has been researched and written by Rehan Abid and the team at Creation Business Consultants and has not used AI in generating this article. Kingdom Of Saudi Arabia (KSA) announced an increase of Value Added Tax (VAT) from 5% to 15% which […]<\/p>\n","protected":false},"author":2,"featured_media":5572,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[98,103,100],"tags":[],"class_list":["post-5571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sa-company-setup","category-sa-law","category-sa-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts\/5571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/comments?post=5571"}],"version-history":[{"count":11,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts\/5571\/revisions"}],"predecessor-version":[{"id":19452,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/posts\/5571\/revisions\/19452"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/media\/5572"}],"wp:attachment":[{"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/media?parent=5571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/categories?post=5571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.creationbc.com\/en-sa\/wp-json\/wp\/v2\/tags?post=5571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\u00a0ZERO RATED SUPPLIES<\/span><\/h2>\n
LIST OF ZERO-RATED MATERIALS<\/span><\/h2>\n
\n
WILL OTHER GCC COUNTRIES INCREASE VAT RATES?<\/span><\/h2>\n
CONCLUSION<\/span><\/h2>\n
\nManaging Director<\/strong><\/p>\n![\"\"](\"https:\/\/www.creationbc.com\/wp-content\/uploads\/2019\/11\/download.png\" "\\"\\"")
<\/a>[\/vc_column_text][\/vc_column][vc_column width=”1\/5″][\/vc_column][vc_column width=”1\/5″][\/vc_column][vc_column width=”1\/5″][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/4″][vc_tta_accordion spacing=”1″ active_section=”0″ collapsible_all=”true”][vc_tta_section title=”ARTICLE UPDATES LOG” tab_id=”1682511105393-b019fb54-a8b8b692-a966″][vc_column_text]This Article was researched and written on May 13th, 2020 by Rehan Abid.[\/vc_column_text][vc_column_text]This Article was reviewed and updated on Oct 12th, 2023 by Scott Cairns<\/a>.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][vc_column width=”3\/4″][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"