From 1st January, 2018 VAT applies in the country in which the services are actually used or benefited from according to Article 20 of The Unified VAT Agreement for the Cooperation Council for the Unified Arab States of the Gulf Cooperation Countries that was approved by KSA by a Royal Decree No. M/51 dated on 3/5/1438.
VAT Standard rate
Prices published to final consumers in the local market should be shown to be inclusive of VAT(31). If the price is VAT-inclusive (or if no mention is made to VAT), then VAT should be calculated as 5/105 of the VAT inclusive price.
VAT Reduced rate
There is no reduced rate established
Registration is mandatory for all taxable persons whose annual turnover exceeds a certain threshold. If the total value of a person’s taxable supplies during a 12-month period exceeds SAR 375,000, the “mandatory VAT Registration Threshold”, that person must register for VAT.