Zakat and Tax: the added value tax is a Gulf decision that will be applied next year.

​

In a workshop in Asharqia Chamber.
 
          Zakat and Tax Committee stressed that the added value tax is a Gulf decision and according to the unified agreement between the Gulf countries to apply the tax on all economic activities of goods and services.
A number of officials of the Committee said in a workshop held on Tuesday, May 23, 2017 in Asharqia Chamber that the tax will be applied according to the vision of the Kingdom 2030 to support transparency in commercial markets.
"The added value tax will be applied in January 2018," said Saleh Al Hammad, head of the Committee in Eastern Province branch. "This type of tax is applied in more than 160 countries and it has the lowest value in the world (5%).
Hammoud Al Harbi, said "The aim of implementing added value tax is to create a balance in the budget, promoting revenue and diversifying sources of tax," adding that it will be applied to all companies and institutions with sales exceeding 375,000 riyals a year.
He added that the executive regulations for value added tax will be completed during the current year, and will be available to companies before the end of this year, saying that the process of tax approval will be imposed on big companies monthly, and on small and medium companies every three months.
He asked the private sector to modify the ongoing contracts with companies before applying the tax.
The head of the legal team of the indirect tax program, Musfir Al Duhaim, said that the executive regulations include details of the tax to be applied in addition to sanctions.
The process of collecting the tax from imported goods will be done through cooperation with the customs authority by including the full data of the goods in the customs statement.