Zakat, Tax and Customs Authority clarifies VAT applies to all goods and services
Saudi Arabia’s Zakat, Tax and Customs Authority explained that VAT is imposed on all goods and services bought or sold by taxable persons.
Key Takeaways
AIThe Zakat, Tax and Customs Authority has clarified which goods and services are subject to value-added tax (VAT).
The authority stated on X (formerly Twitter) that VAT is an indirect tax imposed on all goods and services, or both together, when purchased or sold by individuals or entities subject to the tax.
The authority also confirmed that the price and VAT amount for recharge cards are determined by telecommunications companies. If the recharge card states that the price includes VAT, the tax is paid at the time of purchase. If not specified, VAT will be deducted after activation. VAT is calculated at a rate of 15% on the final invoice price at the point of sale.