Although no specific transitional provisions may be published to resolve such issues, the Implementing Regulations contain transitional provisions drafted for similar situations resulting from the introduction of VAT on 1 January 2018.
The 5% VAT rate is specified in the GCC VAT Framework Agreement and not in the KSA VAT Law or Implementing Regulations. It is unclear whether the rate increase would require amending the GCC VAT Framework Agreement or whether the KSA will do so unilaterally by amending its VAT Law.
Source: bakermckenzie.com
Latest Posts in "Saudi Arabia"
- ZATCA’s 2025 Guide: VAT Rules for E-Market Platforms and Deemed Supplier Obligations in KSA
- Saudi Arabia Revises Customs Tariffs, Increases Duties, and Updates HS Codes Effective 2025
- Saudi Arabia Extends ZATCA Tax Penalty Waiver Initiative Until June 2026
- Saudi Arabia Updates VAT Rules for Online Marketplaces, Amends Excise Tax on Sweetened Beverages
- Saudi Arabia Clarifies VAT Deemed Supplier Rules for Electronic Marketplaces
