Saudi Arabia to Charge 15% Value Added Tax on Goods Imported Through E-Commerce Platforms

Saudi Arabia has announced on the 28th of June 2020, that it will charge 15% value-added tax (VAT) on goods imported through e-commerce platforms. The Saudi Customs Authority confirmed that the new rule will be applicable on products that are shipped on or subsequent to the 1st of July 2020.

Commenting on the new rule, the Managing Partner of Charterhouse Tax Consultancy, Anurag Chaturvedi, stated that all imports on or after the 1st of July 2020 will be levied with 15% VAT and in the event the online order placed before the 30th of June 2020 (cut-off date) is delivered to the buyer subsequent to the cut-off rate, then 15% will apply on the subsequent sales transactions.

Chaturvedi a...