As Saudi Arabia is all set to launch Value Added Tax (VAT) from January 2018, the authorities clarified that emloyees’ salaries would not be affected.
Earlier, there were speculations that VAT may be levied on salary paid to the employees.
“VAT tax is levied on merchandise and services, rather than employees’ wages”, said a statement, reported Al Marsd.
The VAT is imposed on all the stages of import and export operations till the goods reach customers in the ultimate phase.
