Saudi Arabia to charge VAT on Fuel

Fuel

Saudi Arabia is all set to implement Value Added Tax (VAT) from 1st January 2018 onwards. Reportedly, the Government of Saudi Arabia has planned to introduce a uniform VAT rate of 5 percent on all goods including retail goods and big ticket items such as cars and white goods.

Recently the Government has declared to apply standard rate of 5 percent of VAT on fuels also.

The 5 percent of VAT on petrol will be applied also starting 1st January 2018 onwards. This new policy of the Government for the implementation of VAT on fuel will increase the price of the petroleum products.

The local transport of passengers and goods within the kingdom will be subject to the 5 percent tax and it may not be affect to the services related to international passengers and goods transport.

taxscan-loader