Arab Sea, GAZT ink VAT accounting systems deal

Arab Sea Information Systems Co. (Arab Sea) signed on Sunday a memorandum of understanding (MoU) with the General Authority of Zakat and Tax (GAZT) to provide accounting systems and other electronic products to help with the implementation of value added tax (VAT).

Under the one-year MoU, the firm will develop specialized accounting systems that would help vendors collect and pay the tax according to regulations, it said.

The MoU is renewable upon mutual agreement 90 days ahead of expiration date, the statement added.

GAZT will imposing the VAT on selected items starting next year, as part of wider economic reforms in Saudi Arabia aimed at increasing revenue and reducing oil reliance.