SAUDI ARABIA

No VAT in Saudi Arabia except…

Salaries, wages, and bonuses are not subject to VAT in Saudi Arabia, according to the Zakat Tax and Customs Authority.

Salaries, earnings, and all other benefits received from the employer, including bonuses, are not subject to VAT, according to the Saudi Zakat, Tax and Customs Authority (Value Added Tax).

This was in response to a question on Twitter from the Ask Zakat account, which stated that salaries received by employees do not result in any VAT requirements.

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According to the authority, Value Added Tax does not apply to salaries, wages, or any other monies received by an employee from his employer or sponsor, such as bonuses.

The Zakat administration emphasized that establishment expenditures can be deducted in the tax return if they are incurred solely for the purpose of carrying out economic activity and the tax has been paid on them.

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The Zakat and Tax Authority further declared that gold is tax-free if its purity level is 99 percent and it is only transferable in the global bullion market, but it is subject to Value Added Tax if its purity is less than 99 percent.

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The authorities stated that when gold jewellery is sold by a person who is registered with the Value Added Tax system, it is subject to a 15% VAT.

ismailsesa

Works as an in-house Writer at Gulf Tech Plus and focuses on the latest smart consumer electronics. Closely follows the latest trends in consumer IoT and how it affects our daily lives. You can follow him on Facebook, Instagram & YouTube.

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