No VAT on Rents, Medications or Non-GCC Exports: Saudi Arabia

Published November 6th, 2017 - 11:05 GMT
No VAT will apply on exports to countries outside the GCC region. (AFP/ File)
No VAT will apply on exports to countries outside the GCC region. (AFP/ File)

Rents and medicines are among some of the commodities exempted from the Value Added Tax (VAT), according to the General Authority of Zakat and Tax in Saudi Arabia.

No VAT will be levied on passport and driving license issuance and renewal fees, the Authority announced on Saturday.

With 55 days remaining for the implementation of VAT, the Authority announced a list of items and services exempted from it.

These are medicines, medical machinery, and gold, silver and platinum imports for investment which are 99% pure.

No VAT will apply on exports to countries outside the GCC region, services given to non-residents of GCC countries, international transport services for goods and passengers, import of spare parts of qualified means of international transport and their maintenance, repair and modifications.

Some financial services will also be exempt from VAT.

These include the issuance, transfer, receiving or dealing in money or financial securities, providing credit guarantee to clients and life insurance policies.


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