The decision to raise the value-added tax rate to 15% has started today in Saudi Arabia, on all goods and services subject to it in the commercial markets in Saudi Arabia.

A royal order was issued on the eleventh of last May to amend Article (second) of the VAT system, which includes raising the tax rate from 5 to 15%.

According to the Saudi Press Agency, the General Authority of Zakat and Income called on all taxpayers registered in the VAT to verify the readiness of their facilities, and to know all the transitional provisions related to raising the tax rate , By reviewing the guidelines for transitional provisions related to raising the VAT rate.

The Authority also urged citizens and residents to ascertain the elements of the tax invoice, which is the store name, date of purchase, tax number, and value-added tax box, calling for cooperation and reporting with it. For any violation facility in the event that these elements are not available, through the Authority's website (gazt.gov.sa), and through the application of (VAT) for smartphones.

The Zakat and Income Authority called on the taxpayers wishing to obtain more information about tax regulations in the Kingdom and to comply with its provisions, to visit the official website of the authority, or communicate with the authority through a center The unified call on (19993), or through her account for caring for clients on Twitter.

The official spokesman for the Zakat and Income Authority in Saudi Arabia, Hammoud Al-Harbi, had confirmed in an interview with Al-Arabiya yesterday that the value-added tax will rise from 5% to 15% Starting on the first Wednesday of July 2020.

Al-Harbi added that there is a transitional stage to facilitate the application of the rate of tax increase, for contracts, supplies and invoices issued before the date of May 11, 2020, which will continue to pay the tax at the old rate of 5% until The date of June 30, 2021 or until the contract is renewed or expired, whichever comes first, then the tax rate for it increases from 5% to 15%.

He explained that with regard to contracts with government agencies concluded before May 11th, supplies in this contract will continue at the same rate until the date of June 30, 2021 or the end of the contract, whichever is earlier, and this applies On goods whose invoices or supplies were issued before last May 11th.

He said that since the announcement of raising the tax rate, the Authority has made efforts in several ways, including developing knowledge and awareness, and developing technologies for the Authority and among the taxpayers, in addition to the supervisory rounds.

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