Saudi exempts some medicines from VAT

New tax to be applied to all private healthcare services, according to General Authority of Zakat and Tax
Certain medicines and types of medical equipment will be exempt from a new 5 percent value added tax (VAT) taking effect in Saudi Arabia in January, a tweet by the General Authority of Zakat and Tax (GAZT) said Saturday.
By Shoshana Kedem
Sun 10 Dec 2017 10:27 AM

Certain medicines and types of medical equipment will be exempt from a new 5 percent value added tax (VAT) taking effect in Saudi Arabia in January, a tweet by the General Authority of Zakat and Tax (GAZT) said Saturday.

The new tax will be applied at standard rates to all private healthcare services, GAZT said.

Equipment for persons with special needs will also be exempt from the new tax, the government body added.

A link to a list of exempt medical inventory approved by the Ministry of Health and the Saudi Food and Drug Authority (SFDA) was also tweeted by the Saudi VAT twitter account:

The list included vitamins and medical equipment, and said a guide to the application of VAT in the healthcare sector would be available soon.

Saudi Arabia and the UAE will be the first Gulf countries to impose VAT next year, while other governments in the Gulf Cooperation Council plan to follow suit from 2018, in line with economic reform plans to steer their revenues away from energy.

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Last Updated: Sun 10 Dec 2017 12:02 PM GST

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