Saudi Commerce Ministry says product prices must include VAT

Saudi Arabia's Ministry of Commerce affirmed that product shelf prices are inclusive of value-added tax (VAT), noting that these prices are final and similar to the amount paid at the till.

The price displayed on the shelf must include VAT, and be identical to the purchase invoice, the ministry said in a statement.

The ministry pointed out that it is necessary to file a commercial notice against a violating establishment in case of absence of a price tag or price on the shelf differs from the cashier counter.

For example, if a consumer purchases a commodity with a shelf price of SAR 100, it must be VAT-inclusive, and therefore the final purchase invoice should not exceed SAR 100.

The General Authority of Zakat and Tax (GAZT) receives VAT violations on the unified call center (19993), the ministry highlighted.

It further urged all consumers to submit complaints against shops and commercial centers that do not display VAT-inclusive prices on commodities through the Balagh Tijari application or the Consumer Reports Center on (1900).

According to data compiled by Argaam, Saudi Arabia started to apply VAT at 15% instead of 5% effective July 1, 2020.