Contributed by Ayaans Accounting and Tax Consultancy (ASPC), Bahrain. www.aspcbh.com
Ayaans Accounting and Tax Consultancy (ASPC) greet everyone who is reading this article and we are glad to present to you our first article for the AITC tax newsletter.
As our first contribution, we would like to summarize the main Saudi VAT rate and Customs rate change.
The General Authority of SAUDI CUSTOMS on 27 May 2020 announced increased rates of customs duties for certain commodities and goods. The customs duties are to increase at rates ranging from 0.5% to 15% for various products, beginning from 10 June 2020. Any customs rate increase will present an unexpected increase in costs for importers, manufacturers, and those involved in the supply chain, including the final consumers.
The Government of Saudi Arabia has announced that the Value Added Tax (VAT) rate will increase to 15% from the current 5%, effective 1 July 2020.The increase comes as part of additional measures taken by the Saudi government in response to the economic impact of the COVID-19, due to the reduction in government revenue resulting from oil prices fluctuations, reduced economic activity and increased healthcare expenditureDated: [bxcode.pagedata.date]