Saudi Gazette report

Riyadh — House rent and medicines are among some of the facilities and commodities exempted from Value Added Tax (VAT), according the General Authority of Zakat and Tax, which is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia in close coordination with other relevant entities.

No VAT will be levied on passport and driving license issuance and renewal fees, the Authority announced on Saturday.

With 55 days remaining for the implementation of VAT, the Authority announced a list of items and services exempted from it.

These are medicines, medical machinery, and gold, silver and platinum imports for investment which are 99% pure.

No VAT will apply on exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications.

Some specified financial services will also be out of the purview of VAT.

These include the issuance, transfer, receiving or dealing in money or financial securities, providing credit guarantee to clients and life insurance policies.

The nature of economic activities will determine whether VAT should be levied on these or not.