GAZT says entities not allowed to collect VAT before Jan. 1

Saudi entities are not entitled to collect the value-added tax (VAT) or issue related invoices ahead of Jan. 1, 2018, the General Authority for Zakat and Tax (GAZT) said on its Twitter account.

Any tax collected before this date should be returned immediately to avoid potential penalties or fines by the competent authorities, it added.

According to data compiled by Argaam, the VAT will be imposed on the difference between the cost and sale price. It is an indirect tax that will apply to all services and products except for the items exempted by law.