The Ministry of Finance earlier in May 2020 announced an increase to the value added tax (VAT) rate, to counter the economic implications of the coronavirus (COVID-19) pandemic.
The new VAT rate will be effective 1 July 2020. Read TaxNewsFlash
The Saudi tax authority (General Authority of Zakat and Tax) on 20 May 2020 announced guidelines concerning transitional provisions that will apply to contracts signed and tax invoices issued before the effective date of the new VAT rate. The transitional guidance is summarized, as follows:
Contracts signed with government entities
Contracts signed between VAT-registered persons
Tax invoices issued before 11 May 2020
Tax invoices issued between 11 May 2020 and 30 June 2020 (inclusive)
For more information, contact the head of KPMG’s Global Indirect Tax Services:
Lachlan Wolfers | +852 2685 7791| email@example.com
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