The General Authority for Zakat and Income has invited establishments whose annual supplies exceed 375 thousand riyals to register in the VAT system before December 20, 2018 by using the VAT website VAT.GOV.SA. It should be noted that residential property is exempt from the tax
VAT.GOV.SA
The General Authority for Zakat and Income stressed that failure to register for VAT on the specified date will expose the establishment to violations of the regulations, which will result in the imposition of statutory penalties, calling on establishments that have inquiries about VAT to contact them through the unified call center at , or through its official website.
The General Authority for Zakat and Income stressed that failure to register for VAT on the specified date will expose the establishment to falling into violations of the regulations, which will result in statutory penalties.
The Authority explained that in June 2016, the GCC countries agreed to adopt VAT in all GCC countries, and the Kingdom ratified the unified VAT agreement in February 2017 (Jumada I 1438H), and in this framework, the Kingdom committed to apply VAT starting from January 1, 2018 (14 Rabi'II 1440H).
The Kingdom committed to apply VAT starting from January 1, 2018 (14 Rabi'II 1440H).
=====
Real Estate VAT Information
Is residential real estate subject to tax?
Renting or licensing a residential property is exempt from tax
What is a residential property? It is a premises or place of residence designed for the purpose of permanent residence and not for the purposes of commercial activity
Examples of residential real estate:
HousesHouses
<Apartments
CondominiumsSchool and university dormitories
Is the sale of residential real estate taxable? The sale of personal permanent residential property used by the owner or by a person closely related to the owner such as a son, brother, spouse, son-in-law, is outside the scope of VAT as the sale in this case is not considered as practicing the economic activity stipulated in the executive regulations.
Are real estate services taxable?
Real estate-related services are subject to VAT at the basic rate of 5%.
Examples of real estate-related services:
Construction, demolition, conversion, extension or maintenance of real estate
Services supplied by real estate agents, auctioneers, architects, surveyors, engineers and others who perform work related to real estate
Services supplied by real estate agents, auctioneers, architects, surveyors, engineers and others who perform work related to real estate
