Saudi Arabia declared that the VAT rate will be increased from 5% to 15%, which will be effective as of July 1, 2020.
Due to the pandemic which has affected the global economy, several measures have been taken and the tripling of the VAT rate has been cited as one of these measures.
Through the increase, it is intended to route the fiscal imbalance caused by a decrease in consumer and commercial spending.
Should you or one of your team members need further information on this, please contact us at SaudiArabia@UnitedTm.com.
Originally published 21 June, 2020.
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