Private healthcare, education institutions to charge non-Saudis only for VAT: GAZT

Saudi Arabia’s General Authority for Zakat and Tax (GAZT) has announced a new mechanism for the value-added tax (VAT) collection by private healthcare and education institutions, the authority said in a statement.

Under the new rules, non-Saudis only will be charged a 5 percent VAT for services provided by private healthcare and education institutions.

Meanwhile, VAT will not be added to the invoices issued to Saudi citizens, conditional on identity verification, the statement added.

Earlier this month, the Saudi monarch King Salman issued a series of royal decrees ordering payment of several allowances to state employees and military staff, along with exemption from value-added tax (VAT) for some citizens to offset rising cost of living, Argaam reported.

The government was directed to pay VAT for nationals benefiting from private healthcare and private education services and pay taxes for first-time homebuyers at a maximum of SAR 850,000.