No VAT for promoting used Automobile, provided that that particular person isn’t registered in VAT system

No VAT for promoting used Automobile, provided that that particular person isn’t registered in VAT system

The Zakat Tax and Customs Authority (ZATCA) in Saudi Arabia has clarified that the sale of the used autos might be subjected to VAT (Worth Added Tax) provided that it will likely be offered by a showroom or an individual who’s registered with VAT system. Follow Saudi Expatriates on Pinterest

– The ZATCA defined that those that are registered within the VAT system are obligated to gather the tax and make fee to the authority, whereas the others who should not registered with VAT system should not entitled to gather and make fee of the tax to the authority.

– The Zakat Tax and Customs Authority identified that everybody who offers in an financial or enterprise exercise is required to register within the VAT system, if the annual revenues attain the necessary restrict of 375,000 Saudi Riyals.