Saudi Arabia increases VAT from 5% to 15%

Saudi Arabia's Minister of Finance Mohammed Al-Jadaan has announced an  increase in the value-added tax rate (VAT) and suspension of cost-of-living allowances as key fiscal measures to bolster the economy which is facing an unprecedented challenge in the face of global coronavirus pandemic. The hike in the VAT from 5 percent to 15 percent will be effective from 1st July 2020 and a halt to the social allowance will begin from June this year.

This announcement by Saudi Arabia can have a rippling effect on the other GCC countries like UAE and Bahrain and may prompt a discussion amongst the Decision Makers in these countries of they also contemplating similar moves. 

Source : https://saudigazette.com.sa/article/592949/SAUDI-ARABIA/Saudi-Arabia-hikes-VAT-to-15-halts-cost-of-living-allowances

You can access Law including Guidelines, Cabinet & FTA Decisions, Public Clarifications, Forms, Business Bulletins for all taxes (Vat, Excise, Customs, Corporate Tax, Transfer Pricing) for all GCC Countries in the Law Section of GCC FinTax.