VAT not to be applied on Salary in Saudi Arabia

Kingdom of Saudi Arabia is set to all launch VAT from Jan 2018

General Authority of Zaka & Tax has confirmed that VT (Value Added Tax) wil not be levied on th Salaries in the kingdom. Value added Tax will only be added to Good & Services as informed by the Ministry.

VAT not to be applied on Salary in Saudi Arabia

Yes it is confirmed that VAT is levied on merchandisers & Services rather employees wages ut not on Salaries.

Earlier, there were speculations that VAT may be levied on salaries to the employees.

VAT will be imposed on imports & exports at all stages which reaches consumers finally.