yota691 Posted August 19, 2017 Report Share Posted August 19, 2017 GMT 9:08 2017 Saturday, August 19 : Last Updated Including purchased online and applications Saudi Arabia levies value added tax on all imported goods Muhammad al-Harbi The Saudi Zakat and Income Tax Authority explained that the value added tax will be collected on all imported goods, including those purchased from online suppliers and electronic applications. Mohammed al-Harbi from London : The General Authority for Zakat and Income - the body responsible for the collection of taxes in Saudi Arabia - that there are no imported goods exempt from taxes except as stated in the value added tax system, and all imported goods, including goods and goods that are purchased from suppliers Directly through the Internet and electronic applications, noting that there is no minimum value of the value of the value added tax, which means that the store must be registered in Saudi Arabia for tax purposes. The Commission added that with respect to the imposition of value added tax on products purchased or sold at auctions such as used or used machinery or cars, this is determined by the nature of the sale, noting that if the seller carries out an economic activity, If an individual sells his car, he is not subject to value added tax. For dealers who sell only used cars, there is a "margin system" that allows VAT to be levied only on the profit margin (not the value of the car). Tax exemptions In the same context, the Authority revealed that the tax exemptions vary from sector to sector, so that there will be sectors that will be exempt from VAT in general, and there are sectors that will be partially exempted where the product may be exempted or subject to the unified ratio based on the nature of the activity of traders, The Commission indicated that in the future it could identify some governmental institutions, charities, citizens, establishments, farmers within the category of exempt from paying VAT. Saudi Arabia confirmed last May its commitment to apply VAT in January 2018. The General Authority for Zakat and Income at the time that the application of a 5% tax will be on the final price and invoice provided to the customer, may be the company's approval per month or within 3 months depending on the size of the company, With sales of SR 375,000, will be exempted from the application of VAT. Companies will be registered in Saudi Arabia during the fourth quarter of this year to be ready to apply the tax. Value Added Tax (VAT) is that companies and retailers collect VAT from consumers rather than pay their own tax, so questions about the private sector and existing regulations are raised on the application of VAT starting in 2018. Zakat has announced revenues of more than 12 billion riyals for selective tax on smoking and beverages, but at the same time has not announced its estimate of VAT, but SAMA has forecast revenues of between 22 billion and 35.2 billion Real. VAT is one of the most common consumption taxes around the world, with more than 150 countries applying VAT (including GST), including all 29 EU member states, as well as Canada, New Zealand and Australia Singapore and Malaysia, an indirect tax, imposed at each stage of the "supply chain". In general, the final consumer is the one who bears the cost of this tax while the business collects and calculates the tax, thus taking the role of tax collection for the benefit of the government. Quote Link to comment Share on other sites More sharing options...
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