VAT KSA

Value Added Tax (or VAT) is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions. VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets. VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service. Saudi Arabia imposed VAT on January 1, 2018 (Rabi Al-Thani 14, 1439). VAT was introduced at a standard rate of 5%.