Saudi Arabia Is Going To Start Implementing Vat On Petrol By January 2018 But A Few Things Will Be Exempt

Saudi’s General Authority of Zakat and Tax (GAZT) has stated that the standard Value Added Tax (VAT) will now be implemented in the Kingdom, adding a 5% VAT when purchasing petrol.

Discovering this came in a form of a response to someone’s online question asking if there would be a VAT price for gas.

Accorsing to GAZT, the VAT rate of 5% for petrol will be implemented starting January 1st, 2018

Gulf News reported that the decision came as part of the VAT Agreement for the GCC and the VAT Implementing Regulations. 

What will be exempt from VAT?

There will be a ZERO-rate, however; for the international transport of passengers and goods, according to the Unified VAT Agreement for the GCC.. 

• storage and port charges
• parking fees
• transport-related payments
• excess baggage and seat reservation fees 
• aircraft crews and air navigation services 

…..

Withdrawing money from an ATM, car deals between a person or purchasing cars from a garage won’t have VAT 

So we’re all still pretty safe there.

Selling your apartments or homes to first-degree relatives or having it rented out also won’t be included in the vAT charges

Sell away?

Cash transfers from banks, credit cards, leasing, insurance, finance and investment funds 

All exempt..