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"
- Briefing document: Saudi Arabia FATOORAH E-invoicing Compliance
- Saudi Arabia Launches VAT Refund Service for Tourists to Boost Economic Diversification and Tourism
- Saudi Arabia’s ZATCA Phase 23 E-Invoicing: Key Compliance Steps for 2025 Roll-Out
- Saudi Arabia Introduces VAT Refund Program to Boost Tourism and Shopping Experience
- Saudi Arabia Introduces VAT Refund for Tourists, GCC Nationals on Purchases Over SAR 500
