Saudi Arabia-GCC VAT framework approved
On 30 January 2017, the Saudi Arabian government announced their approval of the GCC VAT framework, become the first council member to do so. This is an official announcement that VAT will be introduced to Saudi Arabia, most likely from 1 January 2018 (to be confirmed).
Once implemented, the rate of VAT is expected to be 5%, and there be a number of zero rated goods and services, together with a number of exemptions.
Under the framework, businesses with an annual revenue exceeding SAR375,000 will be required to register for VAT, and businesses with an annual revenue between SAR187,500 and SAR 375,000 will have the option to register.
Affected businesses should consider how this implementation will affect them. Contact us for a full impact assessment.