Saudi to apply 5% tax to fuel

Remigio Civitarese
Novembre 20, 2017

Saudi Arabia will slap a 5 per cent value added tax on gasoline from January 1, 2018, the kingdom's tax authority said on its twitter feed on Sunday.

"The VAT rate of 5 per cent for petrol will be applied starting January 1, 2018", it said.

Earlier, GAZT had confirmed that worldwide transport of passengers and goods is zero-rated according to the GCC VAT Agreement.

In addition, GAZT clarified that, according to the VAT Implementing Regulations, services related to worldwide passengers and goods transport are zero-rated, including, but not limited to, excess baggage and seat reservation fees, maintenance, fix and modification of qualified global transport, storage charges, port charges, parking fees, customs duties, customs clearance fees, transport-related fees, air navigation services fees and aircraft crews, which means that businesses and institutions providing these services will not be affected by VAT.

The previous week the authority had indicated the tax would also apply to ticketed transport journeys within the kingdom.

All Arabian Gulf countries have committed to implement the Unified Agreement for Value Added Tax, but nations are moving at different paces of implementation, raising doubt about the possibility of a harmonious introduction of the levy.

The country had stated in 2015 that 100 food items would be zero-rated.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE