RIYADH: Food products will be subjected to the Value Added Tax (VAT) scheme, which will take effect on the 1st of January in Saudi Arabia.
The Saudi Authority of Zakat and Tax (GAZT) announced that it would levy the 5% fee even on basic staples without any exception.
The GCC agreement allows each member state to levy a tax on basic commodities or set a list of food products which are tax-free.
A GAZT statement urged trade and economic enterprises with annual revenues exceeding SR375,000 to register with the VAT system before the 20th of December to avert any penalties and fines.
VAT registration remains optional for enterprises whose revenues range from SR187.5000 and SR375,000, while those with revenues below SR187.5% have exempted.
