The decision to raise the value-added tax rate in the Kingdom of Saudi Arabia to 15 percent came into effect on all goods and services subject to it in the Saudi commercial markets, after a royal order was issued to amend Article (2) of the value-added tax system, which included raising the tax rate from 5 to 15% on the eleventh of May.
The General Authority of Zakat and Income called on all taxpayers who are registered in the value-added tax to verify the readiness of their facilities, and learn about all transitional provisions related to raising the tax rate, by reviewing the guidelines for transitional provisions related to raising the value-added tax rate. The commission also urged citizens and residents to ascertain the elements of the tax invoice, which is "store name, date of purchase, tax number, and value-added tax box", calling for cooperation with and reporting on any violation facility in case these elements were not available.
The spokesperson for the Zakat and Income Tax Authority in Saudi Arabia, Hammoud Al-Harbi, confirmed that there is a transitional stage to facilitate the application of the rate of tax increase, for contracts, supplies and invoices issued before the date of May 11, 2020, which will continue to pay the tax in the old rate of 5% until the date of June 30, 2021, then its tax percentage will rise from 5% to 15%.
Source (Al-Arabiya.net website, Edited)
