Saudi Arabia

5% VAT on Electricity, Water, School, Mobile Bills

Value Added Tax (VAT) will be levied on power, water and mobile phone bills in Saudi Arabia, Almarsd reported.

The General Authority for Zakat and Tax (GAZT) announced that the VAT would be at a rate of five percent.

It will also apply to prepaid phone cards, internet cards, unconstructed land transactions, used car transactions, online transactions, repair and maintenance services, consultancy and engineering services.

GAZT public relations director Yahya bin Ashteel said that VAT would take effect January 1, 2018.

However, housing rents and salaries have been exempted from Value Added Tax.