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Thursday, November 09, 2017

Saudi Arabia Will Have 5% TAX on Money Transfer Fee


Money transfer charges will increase from Jan. 1 as 5% Value Added Tax (VAT) will be levied on money transfer fees, according to the General Authority of Zakat and Tax (GAZT), which is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia in close coordination with other relevant entities. Advertisements  The 5% VAT will be on the money transfer fee and not on the transfer amount, GAZT clarified, adding that VAT will be paid by the person sending money. However, many financial services will be exempt from VAT. These include several transactions and services such as interest on loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and securities, as well as current, deposit and savings accounts. Other exempted services include life insurance policies. Registered businesses conducting economic activities are subject to VAT, but registered businesses conducting VAT-exempted economic activities are not entitled to deduct VAT. Sponsored Links The nature of economic activities will determine whether VAT should be levied on these or not. House rent and medicines are among some of the facilities and commodities exempted from Value Added Tax (VAT). VAT will be implemented in the Kingdom from Jan. 1 2018. No VAT will be levied on passport and driving license issuance and renewal fees. No VAT will apply on exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications. Source: Saudi Gazzete Money transfer charges will increase from Jan. 1 as 5% Value Added Tax (VAT) will be levied on money transfer fees, according to the General Authority of Zakat and Tax (GAZT), which is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia in close coordination with other relevant entities. Advertisements  The 5% VAT will be on the money transfer fee and not on the transfer amount, GAZT clarified, adding that VAT will be paid by the person sending money. However, many financial services will be exempt from VAT. These include several transactions and services such as interest on loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and securities, as well as current, deposit and savings accounts. Other exempted services include life insurance policies.  Registered businesses conducting economic activities are subject to VAT, but registered businesses conducting VAT-exempted economic activities are not entitled to deduct VAT. Sponsored Links The nature of economic activities will determine whether VAT should be levied on these or not. House rent and medicines are among some of the facilities and commodities exempted from Value Added Tax (VAT). VAT will be implemented in the Kingdom from Jan. 1 2018. No VAT will be levied on passport and driving license issuance and renewal fees. No VAT will apply on exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications. Source: Saudi Gazzete


  Starting January 1, 2018, money transfer charges will increase  as 5% Value Added Tax (VAT) will be levied on money transfer fees, according to the General Authority of Zakat and Tax (GAZT), the government branch responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia.
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The 5% VAT will be on the money transfer fee and not on the principal amount of the money to be transferred, GAZT clarified, adding that  the person who is sending the money will pay the VAT.

However, many financial services will be exempt from VAT such as several transactions and services like interest on loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and securities, as well as current, deposit and savings accounts.
Money transfer charges will increase from Jan. 1 as 5% Value Added Tax (VAT) will be levied on money transfer fees, according to the General Authority of Zakat and Tax (GAZT), which is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia in close coordination with other relevant entities. Advertisements  The 5% VAT will be on the money transfer fee and not on the transfer amount, GAZT clarified, adding that VAT will be paid by the person sending money. However, many financial services will be exempt from VAT. These include several transactions and services such as interest on loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and securities, as well as current, deposit and savings accounts.   Other exempted services include life insurance policies. Registered businesses conducting economic activities are subject to VAT, but registered businesses conducting VAT-exempted economic activities are not entitled to deduct VAT. Sponsored Links The nature of economic activities will determine whether VAT should be levied on these or not. House rent and medicines are among some of the facilities and commodities exempted from Value Added Tax (VAT). VAT will be implemented in the Kingdom from Jan. 1 2018. No VAT will be levied on passport and driving license issuance and renewal fees. No VAT will apply on exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications. Source: Saudi Gazzete Money transfer charges will increase from Jan. 1 as 5% Value Added Tax (VAT) will be levied on money transfer fees, according to the General Authority of Zakat and Tax (GAZT), which is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia in close coordination with other relevant entities. Advertisements  The 5% VAT will be on the money transfer fee and not on the transfer amount, GAZT clarified, adding that VAT will be paid by the person sending money. However, many financial services will be exempt from VAT. These include several transactions and services such as interest on loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and securities, as well as current, deposit and savings accounts. Other exempted services include life insurance policies.  Registered businesses conducting economic activities are subject to VAT, but registered businesses conducting VAT-exempted economic activities are not entitled to deduct VAT. Sponsored Links The nature of economic activities will determine whether VAT should be levied on these or not. House rent and medicines are among some of the facilities and commodities exempted from Value Added Tax (VAT). VAT will be implemented in the Kingdom from Jan. 1 2018. No VAT will be levied on passport and driving license issuance and renewal fees. No VAT will apply on exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications. Source: Saudi Gazzete  Advertisement Read More:     ©2017 THOUGHTSKOTO
Life insurance policies will also be exempted.
Registered businesses conducting economic activities are subject to VAT. However, businesses conducting VAT-exempted economic activities are not entitled to deduct VAT.
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 The determining factor whether VAT should be levied on these or not will be the nature of economic activities.
House rent and medicines are exempted from Value Added Tax (VAT) as well.
 Passport and driving license issuance and renewal fees will be exempted to vat.
Exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications will also not be subjected to VAT.

Source: Saudi Gazzete
Money transfer charges will increase from Jan. 1 as 5% Value Added Tax (VAT) will be levied on money transfer fees, according to the General Authority of Zakat and Tax (GAZT), which is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia in close coordination with other relevant entities. Advertisements  The 5% VAT will be on the money transfer fee and not on the transfer amount, GAZT clarified, adding that VAT will be paid by the person sending money. However, many financial services will be exempt from VAT. These include several transactions and services such as interest on loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and securities, as well as current, deposit and savings accounts. Other exempted services include life insurance policies.  Registered businesses conducting economic activities are subject to VAT, but registered businesses conducting VAT-exempted economic activities are not entitled to deduct VAT. Sponsored Links The nature of economic activities will determine whether VAT should be levied on these or not. House rent and medicines are among some of the facilities and commodities exempted from Value Added Tax (VAT). VAT will be implemented in the Kingdom from Jan. 1 2018. No VAT will be levied on passport and driving license issuance and renewal fees. No VAT will apply on exports to countries outside the Gulf Cooperation Council, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications. Source: Saudi Gazzete

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