JEDDAH: The first year after the launch of the value-added tax (VAT) will be a transitional period, and goods and services supplied under certain long-term contracts will be zero-rated during that period provided the contracts meet certain requirements, the General Authority of Zakat and Tax (GAZT) has announced.
This will enable suppliers and customers who had entered into long-term contractual commitments to renegotiate the contracts’ details, particularly details that will be affected by VAT implementation.
GAZT clarified this treatment applies only to contracts that did not anticipate VAT. Contracts that contain tax-related provisions or mechanisms to adjust prices of goods and services and include VAT will not be exempted.
The GAZT explained that all requirements should be met to apply the transitional provisions: Contracts must have been signed before May 30, 2017; customers should be able to fully deduct the input tax on the supply made; the customer should submit a written letter to the supplier to confirm his ability to fully deduct and refund input tax on the supply. All orders made after Dec. 31, 2018, are subject to VAT, with the correspondent rate indicated in the VAT law and implementing regulations.
GAZT confirmed its willingness to put in place flexible legislation to facilitate VAT implementation for businesses and maximize their readiness. Offering a one-year transition period for contract negotiations will support businesses in adjusting to the new tax system.
The authority has urged all businesses to be fully ready for VAT before its implementation on Jan. 1, 2018, and advised them to visit the official VAT website, www.vat.gov.sa, which contains a VAT manual with a simplified explanation of the basic steps businesses need to take to implement VAT, as well as a wide range of tools and information to support businesses in achieving readiness.
All businesses whose annual revenues exceed SR1 million ($266,600) must register for VAT by Dec. 20, 2017, to avoid penalties and fines, and suspension of government services.
VAT: Saudi businesses given transition period to renegotiate long-term contracts
VAT: Saudi businesses given transition period to renegotiate long-term contracts
Carved by time: Saudi Arabia’s hidden geotourism gem of Razan
- Long before modern engineering, the geology of Razan functioned as effective natural infrastructure, sustaining life in an arid environment
- This utility made Razan a strategic landmark, playing a vital role in the ancient Yemeni Hajj Road
AL-LITH: Sixty kilometers north of Al-Lith governorate in the Kingdom's west, rising above the shifting sands and valleys of the Makkah region, lies a place where the earth itself tells a story. This is Razan, a geological wonder where history is not written in ink, but etched into the stone by the patient hands of wind, water, and time.
Perched atop a high rocky mass and flanked by valleys to the northwest and southeast, Razan stands in natural isolation. This geographic solitude has acted as a guardian, preserving a landscape that feels almost otherworldly — a pristine stage set by nature over millennia.
The place is defined by its striking rock formations: dense clusters of stone, stepped ridges that resemble ancient staircases, and natural ceilings sculpted by the relentless flow of seasonal torrents.
The visual impact is one of dramatic contrast — the heaviness of solid rock balanced against open, airy spaces carved by erosion. Fine channels and intricate flow patterns mark the stone, serving as fossilized evidence of the water that once rushed through these corridors, shaping the land into a rugged work of art.
Nature’s infrastructure
But Razan is more than just a scenic marvel; for centuries, it served as a lifeline. The same forces that sculpted the cliffs also hollowed out natural rock basins. These geological depressions acted as seasonal reservoirs, catching rainwater and supplementing nearby wells. Long before modern engineering, the geology of Razan functioned as effective natural infrastructure, sustaining life in an arid environment.
This utility made Razan a strategic landmark, playing a vital role in the ancient Yemeni Hajj Road. The sturdy, elevated terrain provided a natural pathway for pilgrims, offering stability and protection on their spiritual journey toward Makkah.
Today, Razan stands at the intersection of heritage and opportunity. No longer just a passage for pilgrims, it is emerging as a valuable asset for geotourism. Its unique topography offers a visual feast for travelers and a treasure trove for scientists studying geological history.
As Saudi Arabia moves toward the goals of Vision 2030, sites like Razan are finding new purpose. By transforming this geological narrative into a tourism destination, the region aims to preserve its natural heritage while breathing new life into the local economy.
