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15% VAT hike comes into effect in Gulf country

The increased value-added tax (VAT) came to effect in Saudi Arabia. The VAt was rised from 5% to 15%. The VAT was increased based on a royal decree issued on May 11.

The Saudi Customs has confirmed that e-commerce transactions of goods imported from outside Saudi Arabia will be subject to a 15 per cent VAT on or after 1 July.On its twitter page, the General Authority of Customs said that all sales and purchases in e-stores that includes importing products to Saudi Arabia through customs will be subject to a VAT of 15 per cent if their import or consignment arrives on or after July 1, 2020.

The adjusted tax applies to all supplies of taxable goods or services imported into the Kingdom.

In early May, Saudi Arabia announced it would triple its VAT from 5 per cent to 15 per cent as part of measures to shore up its economy hit by the impact of Covid-19 and low oil prices.


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