Mubasher TV
Contact Us Advertising   العربية

KSA not to apply VAT on medicine, house rents – GAZT

KSA not to apply VAT on medicine, house rents – GAZT
KSA not to apply VAT on medicine, house rents – GAZT

Riyadh – Mubasher: Saudi Arabia will not apply the value added tax (VAT) on medicines and house rents, the General Authority of Zakat and Tax (GAZT) has said.
Issuing of driving licences and passports and their renewal fees, will also be exempted from the soon-to-be-applied VAT, the GAZT added in a statement released Saturday.

The authority further announced that other products such as gold, silver, and platinum imports for investments, which are 99% pure, as well as medicines, and medical machinery will be VAT exempt.
“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,” GAZT said.

Some financial services will be exempted from applying the VAT namely: providing credit guarantee to clients, life insurance policies, receiving or dealing in cash or securities, the issuance, and transfer money.

Saudi Arabia previously announced plans to apply the VAT starting from January 2018, which means the tax will be implemented in less than 55 days.

The VAT is an indirect tax applied on commodities and services and comes as part of the kingdom’s efforts to diversify its revenue and income sources.