VAT implementation regulations approved


Saudi Gazette report

Riyadh — The Board of Directors of the General Authority of Zakat and Tax (GAZT), chaired by Minister of Finance Mohammed Al-Jadaan, has approved the VAT implementation regulations ahead of the introduction of VAT in the Kingdom on Jan. 1, 2018.

The regulations, which build on the GCC Unified VAT Agreement and Saudi VAT Law, govern all aspects of the implementation of VAT in Saudi Arabia.

The regulations include 79 articles, divided in 12 chapters, and set out the scope of taxation for certain goods and services, explain registration rules and eligibility of businesses for VAT, zero-rated and exempted supplies, the treatment of imports and exports, among other areas.

The regulations were finalized following a public consultation and are available on the VAT.GOV.SA website, launched by GAZT last month.

The new website features a range of resources to help businesses prepare for VAT, including video tutorials, guidelines and information packs on every aspect of the registration and readiness process.

“Businesses of all sizes have much to do to prepare for the introduction of VAT and GAZT is ready to support them through the process,” said Governor of GAZT Suhail Abanmi.

“Ensuring businesses understand the implications of VAT — and the steps needed to prepare — is a priority for GAZT. I urge all businesses to look closely at the regulations and their preparations for VAT, and the resources we have developed,” he added.

VAT is being introduced in Saudi Arabia on Jan. 1, 2018, as part of the GCC Unified VAT Agreement.