|Saudi Arabian bunker firms prepare for 2018 VAT regime|
|Supplies of goods and services will be subject to VAT from January 1.
|Updated on 20 Dec 2017 12:55 GMT
|Bunker sellers in Saudi Arabia are preparing for the new value added tax (VAT) regime, which is due to become effective from January 1, 2018.
According to article 53 of the country's VAT law, from the start of next year, all imports into and supplies of goods and services in Saudi Arabia will be subject to VAT.
The standard VAT rate will be five percent; however, in accordance with the GCC VAT treaty and Article 10 of the KSA VAT law, certain goods and services will be subject to zero VAT or will be exempted from VAT altogether. This will include goods movements from other Gulf Cooperation Council (GCC) states.
Local seller Saudi Shipping and Maritime Services Co. Ltd (Tranship) on Wednesday informed its network of industry contacts that it will be adding VAT "on all taxable invoices in accordance with the system from the date 1 January 2018".
"We also ask you to ensure that all invoices for dealing with us comply with the requirements of the VAT Act," the company said in an email.
Tranship, which already has a valid VAT registration certificate ahead of next month's changes, also reminded its contacts to provide them with their tax number and VAT registration certificate.
Saudi Arabia is one of six GCC states launching a five percent VAT regime on January 1. The other countries are: Bahrain, Kuwait, Oman, Qatar and UAE.