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.

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. 


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