There is no VAT on the sale of a used vehicle if the seller is not registered with the VAT system.

317
Advertisement

For the latest updates, news, and events of Saudi Arabia you can join our WhatsApp group


[addthis tool="addthis_inline_follow_toolbox"]

The Saudi Arabian Zakat Tax and Customs Authority (ZATCA) has emphasized that used vehicle sales can only be subject to VAT (Value Added Tax) if they are sold by a showroom or a person who is registered with the VAT system.

The authority went on to say that selling a vehicle to another individual by someone who is not registered in the VAT system and does not engage in any business or economic activity is not subject to VAT.

According to the ZATCA, those who are registered in the VAT system are required to collect the tax and pay it to the authority, whereas those who are not registered in the VAT system are not permitted to collect or pay the tax to the authority.

According to the Zakat Tax and Customs Authority, anybody who engages in an economic or business activity whose annual income above the necessary limit of 375,000 Saudi Riyals is obligated to register with the VAT system.

People with annual incomes of more than 187,500 Saudi Riyals but less than 375,000 Saudi Riyals are eligible for voluntary registration, while those with annual revenues of less than 187,000 Saudi Riyals are not required to register for VAT.

What's your reaction about this news

🥰𝙒𝙚 𝙝𝙤𝙥𝙚 𝙩𝙝𝙖𝙩 𝙮𝙤𝙪 𝙡𝙞𝙠𝙚𝙙 𝙩𝙝𝙞𝙨 𝘼𝙧𝙩𝙞𝙘𝙡𝙚. 𝙋𝙡𝙚𝙖𝙨𝙚 𝙨𝙝𝙖𝙧𝙚 𝙞𝙩 𝙬𝙞𝙩𝙝 𝙮𝙤𝙪𝙧 𝙁𝙧𝙞𝙚𝙣𝙙𝙨 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚 𝙩𝙤 𝙤𝙪𝙧 𝙬𝙚𝙗𝙨𝙞𝙩𝙚 𝙗𝙮 𝙘𝙡𝙞𝙘𝙠𝙞𝙣𝙜 𝙤𝙣 𝙩𝙝𝙚 𝘽𝙚𝙡𝙡 𝙄𝙘𝙤𝙣 (𝙇𝙚𝙛𝙩 𝘽𝙤𝙩𝙩𝙤𝙢 𝙤𝙛 𝙩𝙝𝙞𝙨 𝙋𝙖𝙜𝙚) 𝙩𝙤 𝙧𝙚𝙘𝙚𝙞𝙫𝙚 𝙣𝙤𝙩𝙞𝙛𝙞𝙘𝙖𝙩𝙞𝙤𝙣𝙨 𝙛𝙤𝙧 𝙚𝙫𝙚𝙧𝙮 𝙏𝙧𝙚𝙣𝙙𝙞𝙣𝙜 𝙖𝙧𝙩𝙞𝙘𝙡𝙚.🥰
[addthis tool="addthis_inline_share_toolbox"]

Add us on Snapchat

Follow Us On  Google News

For the latest updates, news, and events of Saudi Arabia you can join our WhatsApp group or Telegram

Find Jobs Online in any region of Saudi Arabia on  KSA Job Site

Advertisement
Advertisement