RIYADH: On a slick website emblazoned with the green and gold of the Saudi Arabian flag, a clock ticks down. When it reaches zero at midnight on New Year’s Day, life will get a little more expensive for the country’s citizens.
Saudi Arabia is to introduce VAT, levied at 5 per cent, on January 1, the latest reform ushered in by Crown Prince Mohammed bin Salman. There are no personal taxes and it is the first tax most Saudis will have had to pay.
It will be imposed on all goods and services except rent, property sales, certain medications, airline tickets and school tuition. Tourists will be able to reclaim VAT at the airport.
