Saudi Arabia: VAT Rate Tripled from 5% to 15%
According to local media reports, Saudi Arabia’s Finance Ministry has tripled the VAT rate from 5% to 15%. The increased rate will come into effect on 1 July. The cost of living allowance will be withdrawn from 1 June. It comes as the Kingdom’s economy tackles plunging oil prices and Coronavirus. The Finance Minister added some Government projects could be slowed down to help reduce spending. According to sources, this could include a 30 billion Riyal cut in projects related to Vision 2030 in the Kingdom. In a related development, the country’s General Authority of Zakat and Tax have called for nationals and expatriates to report anyone who increases VAT on their goods before then via the call centre on 19993 or the VAT application on smart phones. Anyone who violates this Decision will be prosecuted.