Saudi Arabia plans to introduce VAT in two years

Saudi Arabian finance minister Ebrahim Al Assaf said the kingdom expects to introduce value-added tax in two years, aiming for a tax rate of around 5 per cent.

“VAT will be introduced gradually and be completed within two years, which is the time set for application in GCC [Gulf Cooperation Council] countries in 2018. It will be around 5 per cent, which is the lowest worldwide,” Alassaf was quoted as saying.

The International Monetary Fund has suggested the UAE consider imposing VAT at a 5 per cent rate.