This is a tool that you can use to determine the VAT rate on your business transactions during this transitional phase of VAT rate change in KSA. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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:
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:
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
Mohamad Najjar
Indirect tax director, KSA
+966 (0) 56 367 9392
