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GlobalVATOnline

Interested in accessing KSA VAT rate determinator tool?

As you aware that in order to mitigate the financial and economic impact of COVID-19 on the Government revenues and to manage the unprecedented financial burden due to declining oil prices, the KSA government has issued an order inter alia with the following directions, Change in VAT rate: Increase in VAT rate to 15%, effective from July 1, 2020,  through its Minister of Finance (Acting Minister of Economy and Planning). A Royal decree approving the change has already been issued and recently GAZT has also amended the VAT Implementing Regulations and included additional sections for the new transitional provisions.

We have developed a "VAT rate determinator tool" to quickly and effectively identify potential VAT rates applicable on your business transactions based on different criteria. Click here for assessment

Why is it important to apply the correct VAT rate on the business transactions and what are the potential risks? 

Staying VAT compliant by applying the correct VAT rate on business transactions helps in reducing following risks: 

  • Burden of VAT cost, which may impact your financial statements in case of inclusive of VAT contract where the company will bear the cost of additional VAT ;
  • Potential penalties (up to 50% of the VAT liability and recurring 5% on monthly basis) and possible criminal charges;
  • Jeopardising current and future relations with the tax authorities;
  • Reputational damage;

VAT rate determinator first steps:

Simply access our VAT rate determinator tool on the following link “tool”and fill in the information relevant in your scenario. The tool will then automatically determine the applicable rate based on your inputs and share the results along with the basis on which the rate has been determined. 

Depending on your results, you may wish to discuss and arrange a meeting with the KSA PwC VAT Team in order to take the necessary steps as follows:  

Next steps:

  1. Post determination, the tool will ask for the specific query along with contract details, if you have any. 
  2. If you submitted a query, our VAT expert team members based in KSA  will get in touch with you within due course with a remedial action plan to help insure effective VAT compliance in your business transactions moving forward. 

Simply follow the link provided to complete the first step and you will be provided with an immediate and automatic evaluation of your current VAT fitness status.

The above steps will be subject to further internal risk management clearance from PwC before we can engage in providing the services. 

For further queries, please feel free to contact us at: 

mer_vat_rate_determinator@pwc.com

Key contacts:

Chadi Abou-Chakra

Indirect Tax Partner, KSA 
+966 (0) 56 068 0291

chadi.abou-chakra@pwc.com

Mohamad Najjar 

Indirect tax director, KSA

+966 (0) 56 367 9392

mohamad.x.najjar@pwc.com

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