Riyadh – Mubasher: The value added tax (VAT) will be applied on all private healthcare services in Saudi Arabia by 5% as of 1 January 2018, the Saudi General Authority of Zakat and Tax (GAZT) said on Saturday.
The VAT will be applied also by 5% on the online buying of goods, Al-Madina Arabic newspaper reported, citing the GAZT as saying.
“An official source said that GAZT has approved a mechanism to collect VAT on electronic purchases,” the Saudi Gazette said.
There are currently 11.1 million e-Commerce users in the Kingdom, and this number is forecast to increase by 6 million users by 2020, to make up 71.9% of the total population.
Users spent $618 on e-Commerce, and this number will grow to $641 by 2020.
The Saudi customs department stated that it will not released any goods unless their VAT will be paid.
On the other hand, the Saudi the Ministry of Health, and the Saudi Food and Drug Authority (SFDA) approved that the VAT will not be applied on medical equipment and medicines.
The VAT will not be applied on import of some machinery and medical equipment for people with special needs.
