Riyadh – Mubasher: Commitment to the value-added tax (VAT) in Saudi Arabia has reached 90%, surpassing all estimates, said the Saudi Minister of Finance, Mohammed Al Jadaan.

Al Jadaan noted that VAT revenues in the first year of its introduction in the Kingdom amounted to SAR 46.7 million.

Furthermore, the finance minister said that Saudi Arabia achieved a 77% growth in non-oil revenues during the past three years, reaching SAR 294 billion in 2018, from SAR 166 million in 2015.

The minister’s remarks came during the Zakat and Tax Conference (ZTC) held in Riyadh on 13-14 November, in which he pointed that the tax policy aims at achieving a balance between the financial and economic goals of the Kingdom, in line with the ongoing economic and social developments to realize economic diversifications and sustainable development, under the umbrella of Saudi Vision 2030.

The Ministry of Finance introduced VAT in Saudi Arabia since the beginning of 2018, as part of an agreement among member countries of the Gulf Cooperation Council (GCC) to apply the new tax.

It is worth noting that the Zakat & Tax Conference (ZTC) of the Saudi General Authority of Zakat and Tax (GAZT) is bringing global tax and zakat practitioners in Riyadh to discuss the latest significant changes in international tax systems and how these changes affect taxpayers and business environments globally.

The two-day event, featuring more than 60 local and international speakers, aims to ensure a clear understanding of key developments driving tax changes around the world, to help businesses and governments make their tax positions compliant with the new requirements.