Riyadh – Mubasher: The Saudi Food and Drug Authority (SFDA) said that the value-added tax (VAT) will not be imposed on medicines, vitamins, or medical devices and products which are registered with the authority.
The SFDA will be closely monitoring companies and pharmacies to ensure that they are not applying the VAT on medicines and other medical products and equipment registered with the SFDA, the Saudi Press Agency (SPA) reported, citing SFDA executive director of Communication and Awareness Department Abdul Rahman Al Sultan as saying.
On Monday, Saudi Arabia started applying the VAT as per its agreement with other GCC member states. The UAE also began imposing the VAT on the same day.
The VAT is a composite tax which is imposed on the differential between cost and selling prices of products. It is considered an indirect tax and is applied on the cost of production.
