RIYADH: The standard Value Added Tax (VAT) of five per cent will be applied to purchasing petrol, Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has said. The confirmation was stated in a reply to an online question whether there would be a VAT rate for petrol.
Last week, the authority said the local transport of passengers and goods within Saudi Arabia, and associated services would be subject to the standard 5 per cent VAT rate, with businesses collecting the tax from travelers upon purchasing the travel ticket.
You might also like
The zero-rated services include excess baggage and seat reservation fees, maintenance, repair and modification of qualified international transport, storage charges, port charges, parking fees, customs duties, customs clearance fees, transport-related fees, air navigation services fees and aircraft crews.
VAT will be implemented in Saudi Arabia on January 1, as part of the Unified GCC VAT Agreement.
The Implementing Regulations outline the goods and services subject to VAT at the standard 5% rate, zero-rate, and those exempted or out of VAT scope.
According to Saudi daily Okaz, the deposition and withdrawal of cash, car deals between individuals and the sale of cars to garages will not be subject to VAT.
