There’s A Bit Of A Confusion For Both Sellers And Consumers Now That VAT Is Here
Many businesses and customers were confused on Monday the implementation of VAT took place. There is now a 5% tax that will apply to ‘most goods and services’. According to Saudi Gazette, grocery stores and restaurants had issues trying to collect the 5% VAT in halalas, especially on cheaper items.
SAR1 for a bottle of water and an extra 5 halalas
As reported by SG, some sellers admitted to not charging VAT on the first day due to a misunderstanding on its procedures and the calculation method. A lot of grocery stores also sold goods without charging the 5% but then ended up paying that VAT to suppliers.
Adnan Mohammed, a salesman in a grocery store told the local media how was he supposed to collect 5 halalas for someone purchasing either a SAR1 for a bottle of water.
الهيئة العامة للزكاة والدخل تضبط أكثر من 120 مخالفة بحق المنشآت الغير ملتزمة بنظام الضريبة بعد زيارة 456 موقع.https://t.co/sQPuQ7B6NC pic.twitter.com/JBLDZQiFRa
— ضريبة القيمة المضافة (@saudivat) January 1, 2018
Supermarkets don’t seem to have this issue though
Since supermarkets, hypermarkets and big shops have POS (point of sale) machines that accept cards/digital money, they don’t have a problem with the collection of VAT.
If people have any issues or inquiries concerning VAT or anyone violating it, they can call 19993.
أما فيما يتعلق بوزارة التجارة والاستثمار، فيمكنكم التواصل مع مركز اتصال الوزارة عند حدوث مثل هذه الحالات: pic.twitter.com/QRLtzZTVaE
— ضريبة القيمة المضافة (@saudivat) December 30, 2017