JEDDAH: The General Authority of Zakat and Tax (GAZT) on Wednesday confirmed that interest or lending fees charged with an implicit margin for finance will be exempt from value-added tax.
The authority clarified that interest or lending fees charged on loans, credit cards, mortgages, finance leasing, hire purchase products and transformations are all exempted from the VAT.
Officials of GAZT shared this information during a workshop held at its offices in Jeddah. A number of media professionals and officials of the authority attended the event.
Quashing rumors about ATM withdrawals, the GAZT officials told the workshop that customers will not be charged for withdrawing or transferring money from their accounts using ATMs.
However, the 5-percent tax will be imposed on banks’ administrative charges such as the issuance of checkbooks, statements of accounts and safety deposit boxes and the customer will have to bear this expense.
Moreover, rental prices of residential properties, life insurance contract and issue or transfer of a debt security, equity security, or any other transferable document recognizing an obligation to pay a monetary amount to the bearer are also exempt from the VAT.
According to VAT Project Manager Hmood Al-Harbi, zero-rated taxable supplies include medical products and equipment, exports outside GCC region, international transport, the supply of gold, silver and platinum investments, and services provided to non-residents like tourists and pilgrims.
“The value-added taxes that tourists or pilgrims pay will be refunded, laws for that are there in the executive regulations of the VAT, and they will be soon applied. We hope that the necessary regulatory structure will soon be ready, but we cannot give specific timing yet,” said Al-Harbi.
Moreover, government services like issuance of passports and driving licenses are also exempted from the VAT.
No VAT on loans, ATM services, says Saudi tax authority
No VAT on loans, ATM services, says Saudi tax authority
Saudi watchdog warns of possible health risk from Nestle baby formula
- Company voluntarily recalls its Nan, Alfamino, S-26 Gold and S-26 Ultima products over concerns they might be contaminated with cereulide, a toxin produced by bacteria
- Saudi Food and Drug Authority says recall is precautionary and no related illnesses have been reported, but advises consumers to dispose of recalled products immediately
RIYADH: The Saudi Food and Drug Authority on Tuesday warned the public not to consume certain Nestle infant formula products, after the company issued a voluntary recall over concerns about possible contamination.
The advisory covers products marketed under the Nan, Alfamino, S-26 Gold and S-26 Ultima brands. They might be contaminated with cereulide, a toxin produced by the Bacillus cereus bacteria, which can pose a risk to infant health, the Saudi Press Agency reported.
The Saudi authority said the recall was a precautionary measure and no related illnesses have been reported. Possible symptoms of exposure can include nausea, repeated vomiting and abdominal pain.
It advised consumers to dispose of the recalled products immediately, and said it was coordinating with Nestle to ensure they are removed from stores and is monitoring the process.
Full details of the affected products, including batch numbers, are available at the Saudi Food and Drug Authority website. The organization said consumers can report any food safety concerns by calling 19999.
