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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