VATLive > Blog > VAT > Saudi Arabia considers VAT - Avalara

Saudi Arabia considers VAT

  • VAT
  • 28 November 2015 | Richard Asquith

Saudi Arabia considers VAT

Saudi Arabia is considering the introduction of a Value Added Tax regime as it looks to adjust its budget deficit to the fallen price of oil.

The country is the world’s largest exporter of oil, and has been heavily hit by the halving of the crude oil price to below $50 per barrel in the past twelve months. This means it will need to look for other sources of revenues, diversifying its reliance of fuel duties. The Kingdom is also looking at reducing subsidies to the middle classes on energy and water supplies. The latest views on VAT were given by Mohammed bin Salman, who leads the review of the country’s economy.

As part of the Gulf Cooperation Council, Saudi Arabia has been discussing the introducing of a harmonized VAT regime wit the five other member states. The proposed consumption tax will be around 5%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.