Riyadh – Mubasher: The value added tax (VAT) will not be imposed on a car sale from a person who does not have a commercial register to another, the General Authority of Zakat and Tax (GAZT) said on Thursday.
The VAT will be implemented on brokerage fees in case ownership transfer through an auto show, the GAZT added through the VAT’s official Twitter account.
The new excise tax will be added on the final price of second-hand car which will be sold from auto show registered in the VAT’s system.
Saudi Arabia started putting 5% VAT on commodities and services as of January 2018.
The VAT is a composite tax which is applied on the differential between cost and selling prices of products, it is imposed on production cost.
