Saudi Arabia

Salaries will be exempt from VAT

The General Authority of Zaka and Tax confirmed that the value-added tax (VAT) will not be calculated on Salaries.  VAT will only be applicable on goods and services, the ministry added.

VAT will take effect from January 1, 2018.

What is VAT (Value Added Tax)?

A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at the point of retail sale.  The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.

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