Riyadh – Mubasher: The Saudi Electricity Company (SEC) said that the value added tax will be imposed by 5% on electricity bills, the receipt’s value, and the fees for the firm's services.

VAT was put into effect by the kingdom's government and it would be transferred to General Authority OF Zakat and Tax (GAZT), SEC added through its official Twitter account.

Saudi Arabia will start applying VAT by the beginning of 2018.

VAT is composite tax imposed on the differential between cost and selling prices of products, it is indirect tax, applied on production cost.