Saudi Arabia to triple VAT, suspend cost of living allowance

Saudi Arabia
May 2020

Saudi Arabia will triple value added tax and suspend the cost of living allowance for state workers starting 1-Jul-20.

The change in VAT is to counter the impact of the low oil prices due to the COVID pandemic. According to the Finance Minister Mohammed Al-Jadaan, “The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1.”

The increase in VAT rates will have a direct effect on publication charges in the local gazette Amaly and on all professional fees in the Kingdom.
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