What is VAT

Value Added Tax (or VAT) is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions. VAT is applied in more than 160 countries around the world as a reliable source of reveanue for state budgets.

VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service, as illustrated below:

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The consumer pays the VAT cost on purchased goods and services. Businesses pay the government the VAT collected from their customers' purchases and refund the VAT they paid to their suppliers.

 

In June 2016, the GCC countries agreed to impose VAT across the GCC region. In February 2017 (Jumada Al-Awwal 1438), Saudi Arabia ratified the GCC VAT framework and committed to impose VAT with effect from January 1, 2018 (Rabi Al-Thani 14, 1439). VAT will be introduced at a standard rate of 5%.​

The General Authority of Zakat and Tax (GAZT) is responsible for managing the implementation, administration and enforcement of VAT in Saudi Arabia. It does so in close coordination with other relevant entities.

 

GAZT Contact Information:

GAZT has a dedicated team of VAT customer service agents is available to assist you and answer all your VAT related enquiries, through any of the following resources.

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VAT Hotline

Call 19993 (toll-free) 

Open 7am-11pm 

Saturday to Thursday

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Inbound emailing

vat@gazt.gov.sa

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GAZT Website

Please follow this link 

for more information 

about VAT​

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