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Saudi Arabia to mandate e-invoicing ahead of new tax reform

Thursday 18 August 2016 09:43 CET | News

Saudi Arabia is to mandate the use of e-invoicing in the private sector starting with 2017.

According to the source, the mandate will be gradually enforced by the Department of Zakat and Income Taxes (DZIT) and comes ahead of the introduction of new taxes across the kingdom over the next two years.

Saudi Arabia plans to impose a 5 percent value-added tax as a part of a unified Gulf Cooperation Council agreement, which will take effect starting with 2018.

Gulf Arab states, including Saudi Arabia, are also set to impose taxes on a range of commodities, including a 50 percent tax on soda drinks, a 100 percent tax on energy drinks and a higher rate of tax on tobacco products.

The new taxation initiatives are part of the Saudi governments aim to diversify its revenue streams while oil prices remain low.


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Keywords: Saudi Arabia, e-invoicing, regulation, Tax Reform, private sector
Categories: Banking & Fintech
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Countries: World
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