Saudi Arabia News
5% VAT on Transfer of Money in Saudi Arabia
Saudi Arabia is going to introduce the 5% VAT rate from January 1st 2018. General Authority of Zakat and Tax (GAZT) in Saudi Arabia said that 5% VAT will be on money transfer fee and not on the transfer amount. This VAT must be paid by the person who is sending or tranfering the Money.
This will be effective from Next year starting Jan 1st 2018.
However, financial services such as interest on Credit card payments, loans, lending fees charged with an implicit margin such as loans and credit cards, mortgages, financial leasing, transactions involving money and share trading, as well as current, deposit and savings accounts.
Other exempted services include Insurance policies realted to Life.
- If you are sending 1000 SAR (Saudi Riyals).
- If the fee for Sending 1000 SAR is 5 SAR.
- Then 5% VAT will be applied on 5 SAR (which is the fee for tranfering the amount)
No VAT will be applied on exports to countries outside the Gulf Cooperation Council (GCC), services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications.
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