Although the law around the VAT rate change is yet to be published, the initial set of guidelines should be positively received by taxpayers as they allow what appears to be a reasoned approach to dealing with the VAT accounting issues associated with such changes. In particular, those businesses engaged with the Public Sector will be pleased to note that VAT at 5% will still apply for contracts that were entered into prior to May 11 2020 (when the VAT rate change was announced) up until the end of June 2021, and businesses, such as insurers will also note that for invoices issued prior to May 11 but where services are provided post-1 July 2020, the 5% rate will still apply.
Source: Deloitte on LinkedIn
Source Orbitax
Latest Posts in "Saudi Arabia"
- Saudi Arabia ZATCA Wave 23 E-Invoicing Integration Deadline Announced
- ZATCA Phase 2 E-Invoicing: Waves 18–22 and ERP Integration
- Saudi Arabia Unveils Draft Regulations to Strengthen Special Economic Zones Framework and Investor Incentives
- Saudi Arabia Issues Draft Regulations for Four New Special Economic Zones, Enhancing Investment Framework
- Saudi Arabia Expands Mandatory E-Invoicing and E-Reporting for All Businesses via ZATCA Fatoora Platform
