Value Added Tax (VAT)

Value Added Tax (VAT)

Value Added Tax (VAT)

In line with the announcement of the General Authority of Zakat and Tax on Value Added Tax (VAT) Implementation, that the standard rate of VAT will increase to 15% with effect from July 1, 2020, The Saudi Investment Bank would like to inform its customers that VAT will be added to the fees of applicable products and services at the applicable new rate, unless the services or product delivered is exempt from VAT or zero rated.

For more information about Banking services and activities exempted from or subject to VAT Click Here

SAIB VAT Certificate

To download SAIB VAT Certificate, Click here.

Terms and Conditions

It is understood and agreed between the Parties that any amounts due under this (Agreement/contract/service/product/terms and conditions) are exclusive of any Value Added Tax (VAT). Hence VAT shall be added at the current applicable rate as amended from time to time, as per the VAT Rules and Regulations effective the 1st of January 2018 and the subsequent amendments

What is VAT?

The Value added Tax (VAT) is an indirect tax that applies to goods and services within the Kingdom of Saudi Arabia except for those goods and services which have been explicitly exempted from such tax or are zero rated.

Why did the government decide to implement VAT?

This reform will allow the government to diversify its sources of revenue, ensure financial sustainability and increase its revenues in the future.

Which government entity is responsible for VAT?

The General Authority for Zakat and Tax (GAZT):

When will the VAT increase be applied? And what is its percentage?

VAT will be calculated at the rate of 15% on qualified goods and services starting 1 July 2020.

Will VAT be applied to all products and services?

VAT, as a General Consumption Tax (GCT), will be imposed on many transactions related to goods and services within the Kingdom, if such product or service has not been explicitly exempted or zero rated from the tax.

Will VAT raise the cost of living?

The cost of living is likely to rise slightly, but this increase will vary depending on an individual’s lifestyle and spending behavior. For example, if your expenses are concentrated primarily on goods exempted from VAT, you will probably not see a significant increase in the cost of living.

Will the tax include the Bank's products and services?

VAT will be applied to some but not all of the Banks’ products and services.