Saudi Arabian General Authority of Customs has affirmed that goods imported from outside Saudi Arabia through e-commerce platforms will be charged a 15 percent Value Added Tax (VAT) on or after 1 July 2020.
All sales and purchases in e-stores that includes importing products to Saudi Arabia through customs will be subject to a VAT of 15 percent if their import or consignment arrives on or after July 1, 2020, stated On the Saudi Customs on its twitter page.
Currently, all supplies of taxable goods or services imported into the Kingdom are charged at a nominal rate of 5 percent rate.
Earlier in May, In an effort to improve fiscal liquidity depletion caused by the influence of COVID-19 and low oil prices, Saudi Arabia had announced that it would triple its VAT from 5 percent to 15 percent along with a further suspension of the cost of living allowance as part of the measures to manage the situation.
The Saudi government had also taken several steps to decrease the expense amounting to $26.6 billion which includes a number of Vision Realization Programs and major projects for the fiscal year 2020.
