VAT to be introduced in KSA
Jan 31st 2017, 9:38 am
#1
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VAT to be introduced in KSA
Saudi Arabia approves an end to tax-free living | The National
No start date announced but slated to be 5%,
No start date announced but slated to be 5%,
Jan 31st 2017, 11:00 am
#2
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Re: VAT to be introduced in KSA
Saudi Arabia approves an end to tax-free living | The National
No start date announced but slated to be 5%,
No start date announced but slated to be 5%,
I was in KSA yesterday - it is expected to be launched in-line with UAE, as part of the wider GCC move of 5% in early 2018.
Jan 31st 2017, 11:26 am
#3
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Jan 31st 2017, 12:38 pm
#4
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Re: VAT to be introduced in KSA
Been expecting this one for a while now, but as mentioned, it'll probably hit all GCC simultaneously. Read somewhere that its likely to be Jan 2018.
Thankfully income tax and remittance tax seems to have been taken off the table - for now.
Thankfully income tax and remittance tax seems to have been taken off the table - for now.
Jan 31st 2017, 12:53 pm
#5
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Re: VAT to be introduced in KSA
VAT for the UAE has been confirmed as January 2018 but I am not convinced that it will actually start them as I am hearing that little is in place and it's complicated to administer. We shall see.
https://financialuae.me/2016/02/24/n...-january-2018/
Feb 1st 2017, 3:42 am
#6
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Re: VAT to be introduced in KSA
Get ready to be offered "cash price"/"no receipt" discounts in Bur Dubai
Feb 7th 2017, 9:19 am
#7
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Re: VAT to be introduced in KSA
GCC countries sign common value added tax framework agreement | Zawya
Deal done!
Deal done!
07 February 2017
A E James
Muscat: All GCC countries have signed the much-delayed unified value added tax (VAT) framework agreement, a statement issued by the KPMG said.
Bahrain was the last country among the six-member Gulf Cooperation Council (GCC) bloc to sign the common framework agreement, it added. The GCC common VAT framework will form the basis for the national value added tax legislation to be issued in each GCC country. While the VAT framework only sets out key VAT principles, once ratified, it clears the way for each GCC member to release its own national VAT laws based on those principles.
The framework paves the way for a five per cent basic rate of VAT while certain goods and services can be zero rated or exempted from VAT.
Value added tax, which is a tax on consumption and is levied at each stage in the chain of production, will be introduced in GCC countries in the beginning of 2018. The UAE has indicated its intention to implement VAT with effect from January 1, 2018.
A E James
Muscat: All GCC countries have signed the much-delayed unified value added tax (VAT) framework agreement, a statement issued by the KPMG said.
Bahrain was the last country among the six-member Gulf Cooperation Council (GCC) bloc to sign the common framework agreement, it added. The GCC common VAT framework will form the basis for the national value added tax legislation to be issued in each GCC country. While the VAT framework only sets out key VAT principles, once ratified, it clears the way for each GCC member to release its own national VAT laws based on those principles.
The framework paves the way for a five per cent basic rate of VAT while certain goods and services can be zero rated or exempted from VAT.
Value added tax, which is a tax on consumption and is levied at each stage in the chain of production, will be introduced in GCC countries in the beginning of 2018. The UAE has indicated its intention to implement VAT with effect from January 1, 2018.
Feb 7th 2017, 9:23 am
#8
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Re: VAT to be introduced in KSA
Summarise please.
The article was too long and wordy.
I just wanna know how much it's gonna cost me.
The article was too long and wordy.
I just wanna know how much it's gonna cost me.
Feb 7th 2017, 9:57 am
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Feb 7th 2017, 10:56 am
#11
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Re: VAT to be introduced in KSA
VAT or Sales Tax ? There is a difference though that is beyond my ken !
Feb 7th 2017, 10:57 am
#12
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Re: VAT to be introduced in KSA
Apparently it will raise 3.5bn USD for the government in revenues. The other way of seeing that is that it will drain 3.5bn USD from the local economy...
Feb 7th 2017, 11:01 am
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Feb 13th 2017, 7:01 am
#14
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Re: VAT to be introduced in KSA
Anyone know anything more concrete on the VAT and how it will be applied, especially in terms of small businesses?
I'm used to dealing with VAT in the UK which involved submitting accounts and VAT forms with allowances for VAT deductions on costs etc. Balance to be paid with accounts quarterly.
However I am hearing that for any company with a yearly turnover of only US$100,000 per annum they will be charged a flat rate of 5% on turnover.
So immediate questions are:-
Is this 5% to be paid up front (i.e. before you can actually apply the 5% rate on sales) (this in effect be a 5% tax on the company before they apply the VAT on future sales - which sucks).
If the 5% is paid upfront per annum - can deductions on VAT paid be applied?
Will it also therefore be a requirement for yearly accounts (perhaps even audited) to be submitted to a tax authority?
If so then the addition in costs to small businesses is significant with increased direct up front tax cost and also increased accounting costs and time.
I guess no one knows yet, but there needs to be answers, guidelines and clarity on this otherwise SMEs are going to suffer come Jan 2018...
I'm used to dealing with VAT in the UK which involved submitting accounts and VAT forms with allowances for VAT deductions on costs etc. Balance to be paid with accounts quarterly.
However I am hearing that for any company with a yearly turnover of only US$100,000 per annum they will be charged a flat rate of 5% on turnover.
So immediate questions are:-
Is this 5% to be paid up front (i.e. before you can actually apply the 5% rate on sales) (this in effect be a 5% tax on the company before they apply the VAT on future sales - which sucks).
If the 5% is paid upfront per annum - can deductions on VAT paid be applied?
Will it also therefore be a requirement for yearly accounts (perhaps even audited) to be submitted to a tax authority?
If so then the addition in costs to small businesses is significant with increased direct up front tax cost and also increased accounting costs and time.
I guess no one knows yet, but there needs to be answers, guidelines and clarity on this otherwise SMEs are going to suffer come Jan 2018...
Feb 13th 2017, 7:04 am
#15
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Re: VAT to be introduced in KSA
PS - Mods - If no one minds, maybe this thread title could be changed to something like "VAT to be introduced in UAE and across GCC"
As will be across GCC no just KSA etc...
Thanks
As will be across GCC no just KSA etc...
Thanks