VAT will be applicable in Saudi Arabia from January 2018. VAT means Value added Tax which will be applicable to each and every business.
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.
Good news is that VAT will not be applicable for Housing Rents and Governmental Services in the Kingdom. Though some of the Government services are not adherent to the VT include passport and Driver’s License renewal.
Registration of VAT accounts has been started and VAT Awareness is being done everywhere. In GCC, Saudi Arabia will be the first state to implement VAT from Jan 2018.