Saudi Arabia announced the selective tax will be implemented from June 10, 2017
The announcement was made by the General Authority of Zakat and Tax based on a decision taken by the General Secretariat of Gulf Cooperation Council (GCC) on May 23.
The selective taxes that will be implemented by all Gulf countries target several items, including tobacco products and power drink by 100 percent and fizzy drinks by 50 percent.
The Zakat Authority is responsible for collecting VAT and ST, ensuring that all taxpayers comply with relevant laws and that no one evades taxes. It applies international standards for tax collection and uses state-of-the-art technology to ensure precision and accuracy.
If registered people (traders, importers etc.) fail to present a tax declaration to the General Authority of Zakat and Tax, then they will be penalized by a fine ranging between 5% and 25% of the tax value.
Those who withhold information or violate regulations or obstruct Zakat Authority’s employees from carrying out their duties will be fined up to SR50,000.
Value-added tax (VAT) will implement by January 1, 2018.