Value added tax in Saudi Arabia

[General Concrete Servicesd]

Value added tax in Saudi Arabia (VAT) is an indirect tax applied to the consumption of goods and services. Businesses collect VAT from customers on behalf of the government, and it is ultimately borne by the end consumer. Saudi Arabia introduced VAT on January 1, 2018, at a rate of 5%, later increasing it to 15% in July 2020 to enhance fiscal stability. Value added tax in Saudi Arabia is a cornerstone of the country’s economic reforms, promoting stability and diversification. By understanding the VAT framework and maintaining compliance, businesses can avoid penalties and contribute to the Kingdom’s economic vision.