Used auto parts sales by registered companies subject to 15% VAT: ZATCA
The Zakat, Tax and Customs Authority clarified that only registered companies or individuals must charge 15% VAT on used spare parts sales.
Key Takeaways
AIA question was submitted to the Zakat, Tax and Customs Authority asking: "Is a company required to add value-added tax when selling used spare parts purchased from scrapyards or owners?"
The authority explained via its 'Ask ZATCA' account on X that all goods and services are subject to a 15% value-added tax if provided by a registered person or company.
View the post on X
It noted that those registered for VAT are required to collect the tax and remit it to the authority accordingly.
The authority also stated that unregistered individuals are not permitted to impose or collect VAT on sales.