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Showing posts with label GAZT. Show all posts
Showing posts with label GAZT. Show all posts

Wednesday, January 03, 2018

Saudi to Issue Tourist Visa to 65 Countries this 2018; Tourist to get VAT Refund!

To be the top global destination, especially for Muslim tourist. This is the goal, Saudi Arabia wants to achieve by the end of the decade. This is also the reason why there is a massive development in the Kingdom's Red Sea coastline. Aside from millions of visitors for Hajj and Umrah, Saudi wants to open itself to all and beat Dubai, Malaysia, and Turkey on the top spot of global destination, especially for Muslim tourist. With this Saudi Arabia is opening its historical sites and five UNESCO sites for tourist in addition to country's beautiful natural landscape.

To be the top global destination, especially for Muslim tourist. This is the goal, Saudi Arabia wants to achieve by the end of the decade. This is also the reason why there is a massive development in the Kingdom's Red Sea coastline.

Aside from millions of visitors for Hajj and Umrah, Saudi wants to open itself to all and beat Dubai, Malaysia, and Turkey on the top spot of global destination, especially for Muslim tourist.

With this Saudi Arabia is opening its historical sites and five UNESCO sites for tourist in addition to country's beautiful natural landscape.


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Aside from this, tourists in Saudi Arabia will enjoy the tax-free purchases in the near future even after the government imposes 5% in almost all products and services starting January 1, 2018.

The General Authority of Zakat and Tax (GAZT) announced that they are working on a mechanism to return the value-added tax (VAT) to tourists, but it will not be applied in the early months of 2018 because the process is being studied.

According to Hamoud Al-Harbi, director of the VAT operations center at GAZT, it is possible for companies to return the VAT to tourists on products they are taking to their countries.

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He added, the mechanism will be decided later as we are still working on the process, mechanisms, rules, and payment. He said, tax will be returned to tourists coming to Saudi Arabia if they paid the VAT on products that are on the list for the VAT.

But this is not applicable to expat tourist who lives in Gulf Cooperation Council (GCC) countries.

Saudi Gazette reported that the government has the list of 65 countries around the world that will be able to secure tourist visas to Saudi Arabia through travel agency packages.
However as of writing the names of 65 countries has not been announced publicly.

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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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Tuesday, June 13, 2017

SAUDI SIN TAX: Price of Soft Drinks Increase, Cigarette Doubles

Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom. The excise tax, commonly known as a “sin tax,” is imposed on “unhealthy products” that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website. Items that are now taxed include: cigarettes and cigar products, energy drinks and softdrinks. It is unclear if other sugary beverages are included since some shops still sell these at normal prices. A few days prior to the implementation, some smokers struggled to find boxes of their usual cigarettes. Consumers attempted to stock up on cigarettes at their pre-tax price, while suppliers were trying to keep the products off the shelves until the prices rose. At one of the main supermarkets in Jeddah, a shelf stacker said “There was nothing here yesterday,” pointing at the shelf. “Yesterday, the price was normal. But today, a soft drink can is SR2.25 ($0.60).” Some supermarkets had also kept the newly taxed drinks away from customers so they are sold 50 percent higher in price in the case of soft drinks, and double the price for energy drinks. Consumers will now pay SR12 at one supermarket for a 250ml can of a popular taurine drink, which is priced at SR11.90 at another supermarket. Aside from tags of doubled priced energy drinks, a new sign has been posted on market shelves stating: “Energy drinks harmful to health.” The full warning matches the text on beverage cans. This is part of the new move to curb consumption of sugary and energy drinks in the kingdom. The tax authority urged producers and suppliers of taxable goods to register for the excise tax, the GAZT official website stated. The taxing body expects to lower consumption by people with limited income of the taxed products after the price hike. Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months. A regular smoker and energy-drinks lover from Jeddah said the move would not make her quit. “It’s an extra strain on the pocket, but it’s a habit that I can’t just quit or cut down on,” she said. She bought her last pack of the cigarettes she smokes for SR12 one day before the tax into effect. Now it is SR24. Gulf Cooperation Council (GCC) countries are also set to implement a value-added tax (VAT) of 5 percent on certain goods beginning in 2018. This is just the beginning of taxation imposed on goods in the Kingdom. Starting 2018, a 5%VAT will be implemented on goods throughout the GCC - Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and UAE.





Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom.

 The excise tax, commonly known as a “sin tax,” is imposed on “unhealthy products” that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website.

Items that are now taxed include: cigarettes and cigar products, energy drinks and softdrinks. It is unclear if other sugary beverages are included since some shops still sell these at normal prices.


A few days prior to the implementation, some smokers struggled to find boxes of their usual cigarettes. Consumers attempted to stock up on cigarettes at their pre-tax price, while suppliers were trying to keep the products off the shelves until the prices rose.

 At one of the main supermarkets in Jeddah, a shelf stacker said “There was nothing here yesterday,” pointing at the shelf. “Yesterday, the price was normal. But today, a soft drink can is SR2.25 ($0.60).”

Some supermarkets had also kept the newly taxed drinks away from customers so they are sold 50 percent higher in price in the case of soft drinks, and double the price for energy drinks.

 Consumers will now pay SR12 at one supermarket for a 250ml can of a popular taurine drink, which is priced at SR11.90 at another supermarket. Aside from tags of doubled priced energy drinks, a new sign has been posted on market shelves stating: “Energy drinks harmful to health.” The full warning matches the text on beverage cans. This is part of the new move to curb consumption of sugary and energy drinks in the kingdom.
Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom. The excise tax, commonly known as a “sin tax,” is imposed on “unhealthy products” that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website. Items that are now taxed include: cigarettes and cigar products, energy drinks and softdrinks. It is unclear if other sugary beverages are included since some shops still sell these at normal prices. A few days prior to the implementation, some smokers struggled to find boxes of their usual cigarettes. Consumers attempted to stock up on cigarettes at their pre-tax price, while suppliers were trying to keep the products off the shelves until the prices rose. At one of the main supermarkets in Jeddah, a shelf stacker said “There was nothing here yesterday,” pointing at the shelf. “Yesterday, the price was normal. But today, a soft drink can is SR2.25 ($0.60).” Some supermarkets had also kept the newly taxed drinks away from customers so they are sold 50 percent higher in price in the case of soft drinks, and double the price for energy drinks. Consumers will now pay SR12 at one supermarket for a 250ml can of a popular taurine drink, which is priced at SR11.90 at another supermarket. Aside from tags of doubled priced energy drinks, a new sign has been posted on market shelves stating: “Energy drinks harmful to health.” The full warning matches the text on beverage cans. This is part of the new move to curb consumption of sugary and energy drinks in the kingdom. The tax authority urged producers and suppliers of taxable goods to register for the excise tax, the GAZT official website stated. The taxing body expects to lower consumption by people with limited income of the taxed products after the price hike. Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months. A regular smoker and energy-drinks lover from Jeddah said the move would not make her quit. “It’s an extra strain on the pocket, but it’s a habit that I can’t just quit or cut down on,” she said. She bought her last pack of the cigarettes she smokes for SR12 one day before the tax into effect. Now it is SR24. Gulf Cooperation Council (GCC) countries are also set to implement a value-added tax (VAT) of 5 percent on certain goods beginning in 2018. This is just the beginning of taxation imposed on goods in the Kingdom. Starting 2018, a 5%VAT will be implemented on goods throughout the GCC - Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and UAE.

The tax authority urged producers and suppliers of taxable goods to register for the excise tax, the GAZT official website stated. The taxing body expects to lower consumption by people with limited income of the taxed products after the price hike.

Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months.




A regular smoker and energy-drinks lover from Jeddah said the move would not make her quit.
“It’s an extra strain on the pocket, but it’s a habit that I can’t just quit or cut down on,” she said.

 She bought her last pack of the cigarettes she smokes for SR12 one day before the tax into effect. Now it is SR24.
Gulf Cooperation Council (GCC) countries are also set to implement a value-added tax (VAT) of 5 percent on certain goods beginning in 2018.

This is just the beginning of taxation imposed on goods in the Kingdom. Starting 2018, a 5%VAT will be implemented on goods throughout the GCC - Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and UAE.




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