VAT in Saudi Arabia
VAT applicability in Saudi Arabia in 2021
The value added tax in Saudi Arabia in 2021 is a consumption tax applied to all goods and services provided in the city-state. It also applies to imported goods. The VAT is considered an indirect tax because it is paid by the final consumer and it is not levied on the company that produces or distributes the product or supplies the service.
At the level of 2021, foreign company owners who want to register for VAT in Saudi Arabia can rely on our accountants.
Details on the VAT in Saudi Arabia
- Exports of products and services outside the Council Territory, when backed by proof of the movement of these products or services;
- Supplies with customs duty suspension areas;
- Exports of services when the client is not a resident of the Council Territory and/or the consumption does not occur within the Territory;
- International transport services of goods and individuals;
- Medical equipment and medicines;
- Investments in precious metals.
- The issuance or transfer of money or security on a monthly basis;
- Operations of current, deposit and savings accounts;
- Financial instruments;
- Islamic finance products, which are Shari’ah compliant;
- Interests on loans, debt security or credit;
- Life insurance;
- Other services: our Saudi Arabia company formation agents can provide more details on what these other services consist of. We can also advise you on how to open a company in Saudi Arabia.