By Innovation-sa on November 19, 2017 in News
The General Authority of Zakat and Tax (GAZT) has published the implementing regulations of Value Added Tax (VAT) through their website, vat.gov.sa which defines various exempted activities in the financial sector.
Loans, credit cards, finance leases, mortgages, security transactions or bank notes, current accounts, deposits and savings account fall in the category of exempted activities.
For transfer of funds, the amount transferred is exempted from VAT, but a transfer fee of 5 percent will be charged on the person transferring the money.
Businesses involved in economic activities subject to tax will be given permission to recover the VAT amount they paid on their taxable goods. However, entities involved in economic activities exempted from tax are not entitled to recover the VAT they paid on their taxable goods.
As per the Unified Agreement for VAT in the GCC countries, VAT will be implemented in Saudi Arabia from January 1, 2018 onward.