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Frequently Asked Questions on VAT

Last updated on 06 April, 2018


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What is VAT?

VAT is an indirect tax which is imposed on goods and services bought and sold for business in the KSA.

VAT is imposed on a product at each stage of its production before the final sale.

At each stage of the supply chain, the seller collects VAT from the buyer on behalf of the government. Because the buyer in each stage becomes the seller in the next stage, the entire liability for VAT ultimately falls on the final consumer in the supply chain.

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