Riyadh – Mubasher: The sale and purchase of white lands will be taxable, under the value-added tax (VAT), if these lands will be used in carrying out any commercial or economic activity, said a spokesperson at The General Authority of Zakat and Tax (GAZT), Makkah newspaper reported on Wednesday.
These lands will be subject to a 5% tax on the total value of the sale, Yahiya Mohamed bin Ashteel added.
White lands are those that are not developed nor have any building activities.
In addition, the return of any taxed commodity will include the repayment of its entire value including the taxed amount, he added.
Ashtyn continued to mention that the tax will include all the service offices such as engineering consultancies, indicating that the tax rate would be 5% of the price of the service.
Both pre-paid and post-paid phone bills will be taxable and paid on a monthly basis, he noted, highlighting that the same applies to internet services and bills for electricity and water services.
The sale of used cars will also be under the taxable conditions, alongside any products or services purchased via the internet, he revealed.
It worth mentioning that the VAT is an indirect tax levied on services and commodities throughout the entire supply chain to produce a service or commodity.
Saudi Arabia and other GCC member states such as the UAE, will start imposing the VAT in January 2018.
