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Saudi Arabia’s new 15% VAT effective Wednesday

Saudi Arabia’s new 15% VAT effective Wednesday
The decision aims to mitigate the economic consequences of the COVID-19 pandemic

Riyadh - Mubasher: Saudi Arabia’s decision to triple the value-added tax (VAT) on all applicable goods and services in commercial markets from 5% to 15% comes into effect on Wednesday, 1 July, announced the General Authority of Zakat and Tax (GAZT).

The mandate comes as the kingdom decided to cut expenditure and raise revenue sources, as part of measures to protect the Saudi economy and mitigate the unprecedented financial and economic ramifications of the coronavirus (COVID-19) pandemic.

Earlier, the Saudi Minister of Finance and acting Minister of Economy and Planning, Mohammad Al Jadaan, said that the pandemic led to lower global oil prices and a plunge in the Saudi oil revenue, while precautionary measures had a negative impact on non-oil revenue and economic growth as many local economic activities were suspended.