Saudi Arabia – retroactive effect of VAT
Thursday, 12 07 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
The General Authority of Zakat & Tax confirmed that the value added tax will be implemented on insurance contracts issued after May 30th, 2017 for the remaining period starting from 1 January 2018 until the end of the insurance contract period. However, officials of the insurance sector said that despite the official statement made by the Authority, insurance managers are still discussing with the legislators the retroactive effect on paid contracts for contracts issued before December 31st indicating that the final decision has not been issued yet. Makkah newspaper reports also that insurance mangers of different companies said that they did not receive a memo or instructions about the retroactive effect of the tax.
The director of the value added tax project in the General Authority of Zakat and Tax, Mr. Hamoud al-Harbi told “Makkah Newspaper” in a press event in Jeddah that the value added tax will be applied starting 1/1/2018 including the contracts issued after 30 May 2017.
Source: Makkah Newspaper