JEDDAH: The General Authority of Zakat and Tax (GAZT) announced on Dec. 24 that they are working on a mechanism to return the value-added tax (VAT) to tourists, but it will not be applied in the early months of 2018 as the process are yet to be established.
Hamoud Al-Harbi, director of the VAT operations center at GAZT, told Arab News: “According to executive regulations, it is possible for companies to return the VAT to tourists on products they are taking to their countries.”
He added: “The mechanism will be decided later as we are still working on the process, mechanisms, rules and payment. Some countries, for example, specify what amount to return; if it is less than €100 (SR445) it won’t be returned.”
He also said in a statement that the implementation of tax-free system for tourist purchases included in the VAT will not be applied in early January.
He pointed out that the executive regulation of VAT approved that the tax will be returned to tourists coming to Saudi Arabia if they paid the VAT on products that are on the list for the VAT.
Expat tourists who live in Gulf Cooperation Council (GCC) countries will not be included under the system of the returned VAT.
Tourists coming to the Kingdom will submit an application to have their VAT returned during their stay in the Kingdom.
Those who will apply for this service will be required provide proof of VAT payment and products they paid for before getting approval for the tax they paid to be returned.
The VAT is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions.
VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets. VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service.
Saudi Arabia is committed to impose VAT with effect from Jan. 1, 2018. VAT will be introduced at a standard rate of 5 percent.
Tourists to get refund on VAT paid in KSA
Tourists to get refund on VAT paid in KSA
Saudi mine-clearance project in Yemen destroys 4,235 explosive devices in a day
- Project Masam aims to rid Yemen of all mines to help ensure the highest standards of safety and security for the Yemeni people
LONDON: Saudi Arabia’s Project Masam cleared 4,235 mines, unexploded ordnance and other explosive devices in a single day from Bab Al-Mandab region in southwestern Yemen, as part of its mission to protect civilians.
Osama Al-Gosaibi, the project’s director general, said it aims to rid Yemen of all mines to help ensure the highest standards of safety and security for the Yemeni people.
On Wednesday, the project’s teams destroyed 33 anti-tank mines, 31 anti-personnel mines, 86 miscellaneous shells, 2,750 assorted rounds, 1,291 breakers and valves used in devices, 12 grenades, two Katyusha rockets, a missile, 15 shell arrows, and 14 other explosive devices.
Masam’s teams are tasked with clearing villages, roads and areas around schools to facilitate the safe movement of civilians and delivery of humanitarian aid.
The project trains local people to become demining engineers, provides them with modern equipment to do the job, and also offers support to Yemenis injured by explosive devices.
