Coronavirus: Saudi tax authorities reiterate new 15 pct VAT effective July 1 onward

A jeweller, wearing a protective face mask, is seen inside his store at a Tiba gold market in the capital Riyadh on April 30, 2020, after the partial lifting of the curfew. (AFP)

Authorities in Saudi Arabia reiterated that the rise in the Value Added Tax (VAT) from 5 percent to 15 percent will go into effect starting July 1, according to a statement from the Kingdom’s General Authority of Zakat and Tax (GAZT).

“The GAZT urged all citizens and expatriates to report any facility that violates this decision and increases the VAT on the goods or services before the determined date via the call center 19993 or the VAT application for the smartphones,” according to a statement from the authority carried by the Saudi Press Agency.

“The authority also called on the businesses to abide by the announced date to apply the new VAT, affirming that legal procedures will be taken in a case of violations,” the statement added.

Saudi Arabia’s Finance Minister Mohammed al-Jadaan (L) being interviewed by Al Arabiya's senior business presenter Naser ElTibi (R).

Saudi Arabia’s Finance Minister Mohammed al-Jadaan (L) being interviewed by Al Arabiya's senior business presenter Naser ElTibi (R).

The hike in the VAT to 15 percent was one of the measures taken by government officials in Saudi Arabia earlier this week to protect the Kingdom’s economy and help it overcome the negative impact of the coronavirus pandemic.

Other measures included a 100 billion riyals ($26.6 billion) cut in spending and a suspension of the distribution of the cost of living allowance from June 1 onward.

Saudi Arabia reported 1,911 new coronavirus cases and nine new deaths, bringing the total number of cases in the Kingdom to 42,925 and the virus-related death toll to 264.

The Kingdom will also introduce a full day lockdown and curfew across Saudi Arabia during the upcoming Eid holidays from May 23 until May 27, according to the Kingdom’s Interior Ministry.

Until then, the currently easing of restrictions – including the resumption of economic activities – will continue until the end of Ramadan, with exception of Mecca which will continue to see a full lockdown and curfew for the time being.

Read more:

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Last Update: 06:58 KSA 09:58 - GMT 06:58
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