Saudi Arabia will start collecting Value Added Tax (VAT) of 15% from 1st July 2020, which is 3 times more than from the current 5% VAT. The increase in VAT is to protect the health care and livelihoods of Saudi Arabians said Finance Minister at the time of its announcement.
Value Added Tax (VAT) is a indirect tax charged on the sale of goods or services, mostly it will be included in the final sales price.
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The announcement of 15% VAT came in mid-May after the wave of enormous cost cutting programs to help counter the unprecedented economic fallout due to the corona virus pandemic.
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The importance of the measure undertaken in order to protect the Saudi economy and overcome the unprecedented financial and economic ramifications of the global corona virus pandemic in the possible best way, stressing that these measures complement previously made decisions to reduce the negative effects of crisis from a health perspective as well as economically and socially.
Reference for the News : https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2085204