The coming new year will mark the implementation of VAT, a major financial implementation in Saudi Arabia. While the move is in line with IMF’s recommendation for Gulf countries to impose value-added taxes, there are many things about it that the masses are not fully aware of.
We came across a list of items that are exempt from VAT and we eagerly wanted to break the news to you.
1. Medicine And Medical Equipment
Only those that are specified by the Ministry of Health and the Saudi Food and Drug Authority.
2. Gold and Silver
Provided that they are at least 99% pure and tradable in the bullion markets.
3. Goods Export
However, the exemption is applicable only on foreign exports outside of the GCC.
4. Life Insurance
It includes reinsurance contracts as well.
5. Government Agency Services
So passport renewals, issuances of driving licenses etc. will have no VAT on them.
6. International Transportation
This includes air, sea or land travel outside the country.
7. Selected Financial Services Like Savings And Deposit Accounts
It also includes credit or credit guarantee provided by banks and other financial institutions.
8. Residential Real Estate Rent
Villa, apartment or studio flat – as long as it’s residential it will be exempted from VAT.
For more information on the list of exemptions, you can log onto Vat.gov.sa