5% VAT on All Food Commodities – List of Goods And Services Subject to VAT in KSA

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The General Authority of Zakat & Tax (GAZT) confirms that the VAT will be applicable to All food commodities, including basic commodities without exception.

List of Applicable Saudi Arabia, VAT Rates

Food & Beverages

Food & Beverages: 5%

Transportation

Domestic transportation: 5%
International transportation (including intra-GCC): 0%
Transportation services for Goods or passengers outside the Kingdom: 0%
Supply of a qualifying means of international transport (vehicle, vessel, aircraft) with special specification: 0%
Supply of replacement parts, consumables, maintenance and repair services for qualified transport (with special terms:) 0%

Real Estate

Private education: 5%
Public education: Out of scope

Healthcare

Private healthcare: 5%
Public healthcare: Out of scope
List of medicine and medical equipment issued by KSA Ministry of Health and SFDA: 0%

Oil, Oil Derivatives and Gas Sector (domestic)

Oil, oil derivatives and gas sector (domestic): 5%

Wired and Wireless Telecommunications and Electronic Services

Wired and wireless telecommunications and electronic services: 5%

Financial Services

Margin-based products: Exempt
Operation of any current, deposit or savings account: Exempt
Explicit fee, commission or commercial discount: 5%
Insurance products (including health insurance): 5%
Insurance services and life reinsurance: Exempt
Interest or lending fees charged with an implicit margin for any form of lending (including loans and credit cards): Exempt
Interest or lending fees charged with an implicit margin for finance (including finance leasing): Exempt
Issue or transfer of a debt security or any other transferable monetary amount: Exempt

Government Activities

Public services provided by government agencies which are not considered as an economic activity such as renewal of passport, driving license, etc.: Out of scope
VAT rate
Exports outside the GCC Territory: 0%
Services provided to non-GCC residents and consumed outside of Council Territory: 0%
Activity exercised by employees bound to an employer by contract: Out of scope
Supplies made by members of a single tax group: Out of scope

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