Riyadh – Mubasher: The value added tax (VAT) will be imposed on e-commerce shops which are owned by individuals on Twitter and Instragam, said on Tuesday the Saudi General Authority of Zakat and Tax (GAZT).
The VAT will be applied on goods that will be purchased through Amazon and E-bay while they are imported to Saudi Arabia by customs.
The VAT is a composite tax which is applied on the differential between cost and selling prices of products, it is deemed an indirect tax, and it is imposed on production’s cost.
On Monday, 1 January, Saudi Arabia started putting 5% VAT into effect on commodities and goods.
