The Manager of Saudi Arabia’s VAT Project, Hammoud Alharby has confirmed companies suffering financial losses will not be exempted from VAT and sectors which generate more than 375,000 Riyals will have to register for the tax. Registration will be optional for sectors generating up to 185,000 Riyals. Alharby confirmed the draft VAT law will be issued in the next fortnight. Its provisions will come into force in January 2018. The penalties are expected to include paying half of the value of the tax due in addition to the tax payment if the business fails to register or if a mistake is made in the tax return.