VAT 15% Tax in Saudi Arabia from 1st July 2020
Value Added Tax has been raised in Saudi Arabia from 5% to 15%. This started from today July 1st, 2020, Saudi Arabia will collect 15% VAT Tax in the Kingdom. According to the Saudi finance minister, this is all about the care for the public livelihoods in KSA.
VAT 15% Tax in Saudi Arabia
For your information, the Value Added Tax is an indirect charge from the public only. There is nothing in terms of loss to the service and product provider. But in the end, the public will pay the tax as the government charges.
Back in 2018, the VAT Tax was only 5%. But due to the current situations and pandemic impacts. The government has raised it from 5% to 15%. All the prices including gasoline, petrol, other products and services will go up. In short, the prices will get higher by up to 15%.
This is all to protect the Saudi economy due to the current worst pandemic situations. However, its the government taking of their people on both sides. They do care about our better future and wanna control things like the economy as per the current corona situations.
This will help to reduce the crisis from the health perspective in Suad Arabia. However, in the near future, if things go under control they may remove it (who knows). The increase in VAT will help reduce crisis, its something that will help in terms of economy control this and upcoming year.