Saudi Arabia to impose 5% VAT on fuel from January 1

The standard Value Added Tax (VAT) of five per cent will be applied to purchasing petrol, Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has said.

The confirmation was stated in a reply to an online question whether there would be a VAT rate for petrol.

“The VAT rate of five per cent for petrol will be applied starting January 1, 2018,” GAZT said.

Last week, the authority said the local transport of passengers and goods within Saudi Arabia, and associated services would be subject to the standard 5 per cent VAT rate, with businesses collecting the tax from travelers upon purchasing the travel ticket.