Saudi Arabia to charge 15% VAT on goods imported through e-commerce
VAT on such imports will be applicable if consignment arrives after July 1
Dubai: The Saudi Customs has confirmed that e-commerce transactions of goods imported from outside Saudi Arabia will be subject to a 15 per cent Value Added Tax (VAT) on or after 1 July 2020.
On its twitter page, the General Authority of Customs stated that all sales and purchases in e-stores that includes importing products to Saudi Arabia through customs will be subject to a VAT of 15 per cent if their import or consignment arrives on or after July1, 2020.
The adjusted tax applies to all supplies of taxable goods or services imported into the Kingdom and currently subject to the 5 per cent rate.
Earlier last month, Saudi Arabia announced it would triple its VAT from 5 per cent to 15 per cent as part of measures to shore up its economy hit by the impact of Covid-19 and low oil prices.
The government also said it will suspend the cost of living allowance as part of the austerity steps.
Saudi Arabia is one of the most affected countries by the coronavirus in the middle east, where it has reported so far more than 178,504 cases along with 1,511.