Riyadh, Saudi Arabia.


Saudi Arabia to impose 15% VAT on goods from online sellers


DUBAI – Saudi Arabia announced it will levy 15 percent value added tax (VAT) on items bought from online sellers and online stores based abroad.

The Saudi customs authority said on Sunday (June 28) the new rule will be applicable to all products shipped to the kingdom on or after July 1.

Saudi Arabia is tripling its VAT from 5 percent to 15 percent starting on July 1. It will also suspend the cost of living allowance to its citizens on July 1.

With the implementation of VAT on online selling, e-commerce companies are expected to collect additional fees from buyers if products are delivered to Saudi Arabia.

Saudi Arabia rolled out 5 percent VAT in January 2018, along with other GCC countries, including the UAE. The emirates, however, said there are no plans to increase VAT in the country. ICA/Expat Media


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