Download Ready Reckoner for VAT rates in KSA

Tally Solutions, Feb-03-2020

With the introduction of VAT in Saudi Arabia, a new era has dawned in the country, where many goods and services supplied will attract VAT. For businesses having operations in Saudi Arabia, it is important to know the VAT rates applicable to the supplies that they make. The below table is a ready reckoner to understand the VAT rates applicable to different sectors in the country.

KSA VAT Rate Schedule
Supply	Taxable @ 5%	Taxable @ 0%	Exempt	Out of scope
Food & Beverages
Transportation
Domestic transportation
International transportation (including intra-GCC)
Transportation services for goods or passengers outside KSA
Supply of a qualifying means of international transport (vehicle, vessel, aircraft) with special specifications
Supply of replacement parts, consumables, maintenance and repair services for qualified transport (with special terms)
Real Estate
Commercial sale and rent
Residential sale, where the property was not used or intended to be used as a permanent residence of the seller, or the seller’s relative (up to the fourth degree)
Sale of own/close relative’s dwelling
Hotels, inns, guest houses, motels and serviced accommodation rent
Residential rent
Rent of housing for students
Education
Private education
Public education
Healthcare
Private healthcare
Public healthcare
Medicines and medical equipment issued by KSA Ministry of Health and SFDA
Oil, Oil derivatives and Gas sector (domestic)
Investments in Gold, Silver, and Platinum
≥99% pure and tradable in global markets
<99% pure
Wired and Wireless telecommunication and Electronic services
Financial Services
Margin based products
Operation of any current, deposit or savings account
Explicit fee, commission or commercial discount
Insurance products (including health insurance)
Insurance services and life reinsurance
Interest or lending fees charged with an implicit margin for any form of lending (including loans and credit cards)
Interest or lending fees charged with an implicit margin for finance (including finance leasing)
Issue or transfer of a debt security or any other transferable monetary amount
Government Activities
Public services provided by government agencies which are not considered as an economic activity, such as renewal of passport, driving license, etc.
Others
Exports outside the GCC territory
Services provided to non-GCC residents and consumed outside the GCC territory
Activity exercised by employees bound to an employer by contract
Supplies made by members of a single tax group