Saudi Arabia to charge VAT on fuel
Saudi Arabia's General Authority of Zakat and Tax (GAZT) will impose the standard five percent Value Added Tax (VAT) on fuel starting January 1, 2018, reports Gulf News.
The VAT will be applied on petrol purchases and local transport of passengers and goods within Saudi Arabia, and associated services.
International transport of passengers and goods are exempted from VAT.
Despite the VAT and proposed price increase, fuel prices in Saudi Arabia remain to be much lower compared to other Gulf countries, according to a Saudi Gazette report.
GAZT has urged businesses to register for VAT before its implementation.
