Blog > Blog > VAT > Saudi Arabia 2018 VAT bill - Avalara

Saudi Arabia 2018 VAT bill

  • VAT
  • 29 May 2017 | Richard Asquith

Saudi Arabia 2018 VAT bill

Saudi Arabia today published its draft VAT law. It is first of the six Gulf Arab states planning to launch VAT on 1 January 2018 to present detailed legislation.  The other states of the Gulf Cooperation Council launching a harmonized 5% VAT regime are: Bahrain; Kuwait; Qatar; Oman; and UAE.

The law is based on the recently published GCC Unified Customs Law, which provides the principles for all six states to adopt in their VAT regimes.  Topics covered by the Saudi Value Added Tax Draft Law include:

  • VAT registration requirements and processes for resident and non-resident businesses
  • VAT Groups, and related companies acting as a single taxable person
  • VAT on imports, including import VAT deferment and customs duty suspension regimes
  • Zero-rating on goods movements from other GCC states
  • The possibility of cash-based VAT reporting
  • The right for taxable persons to deduct input VAT incurred
  • Cooperation with other GCC states on VAT audits and investigations
  • VAT records
  • VAT refunds
  • Fines and penalties regime
  • Transitional arrangements
  • Import VAT union including the other GCC states

There is still much detailed regulations missing on practical issues, including: the time of supply; what goods and services are exempt or nil-rated; VAT invoice and credit rules; and VAT reporting periods and remittances.

Latest Saudi news
Saudi Arabia VAT reverse charge foreign providers
October 5, 2018

The Saudi Arabian tax authority has published guidance on the reverse charge rules for B2B supplies provided by non-residents. As with most VAT regimes, the...
Saudi Arabia 4,700 VAT violations
April 23, 2018

Following the 1 January 2018 launch of 5% VAT in Saudi Arabia, over 4,700 violations have been found from 12,578 audits of businesses. The figures...
Four Gulf states not ready for VAT till end of 2019
February 15, 2018

The International Monetary Fund (IMF) has declared that the Arab Gulf states of Bahrain, Qatar, Oman and Kuwait will not be prepared for the launch...

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.