Riyadh – Mubasher: The Saudi General Authority of Zakat and Tax (GAZT) denied that houses that are financed for private housing for the family or relatives until the fourth degree are value-added tax (VAT)-free.
The VAT will not be imposed on selling the permanent residential property which is used by the owner or by a close relative, the GAZT added.
The VAT will be applied on the Kingdom’s real estate sector by 5%, with the exception of leasing or licencing the residential property.
On Monday, 1 January 2018 Saudi Arabia will start putting 5% VAT on commodities and services into effect.
The VAT is a composite tax applied on the differential between cost and selling prices of products, it is deemed an indirect tax, and it is applied on production’s cost.
