VAT will also apply to goods produced before Jan 1: GAZT

The 5 percent value-added tax (VAT) will apply to all sales transactions starting January 1, through a VAT-registered seller, regardless of the production date of a commodity, Saudi Arabia’s General Authority of Zakat and Tax (GAZT) said on Wednesday.

The clarification, posted by GAZT on the official VAT Twitter account, came in response to reports claiming that goods with production date prior to January 1 will be exempt from VAT.

Saudi Arabia is preparing to levy VAT from January 1. The indirect tax will be imposed on the difference between the cost and the selling price of a product or service.

VAT will apply to all products or services, except those exempt by a resolution.