FAQ for VAT

What is the VAT?

The Value Added Tax (VAT), is an indirect tax applied on the goods and services except for those goods and services, which have been exempted from such tax.

When will the VAT be applied?

The Value Added Tax will be implemented starting from 1 Jan 2018

What is the VAT percentage for goods and services applied?

VAT will be with a standard rate of 5% applied to qualified goods and services. 

Which governmental entity is responsible for VAT?

The General Authority for Zakat and Tax, Please visit the following website www.gazt.gov.sa

For more details related to VAT, please visit the following link www.vat.gov.sa

Will VAT be applied to SAPTCO services?

Yes, VAT will be applied to SAPTCO services as follows:

  • Urban
  • InterCity transportation (between cities in KSA)
  • Limousine services (including international Limousine services)
  • Contracts and Charter services
  • Cargo services

 

What SAPTCO services will be excluded from VAT?

The excluded SAPTCO services will be as below:

  • Direct international transportation services
  • Direct international contracting and leasing services
  • Direct international shipping services (cargo)

Can I refund VAT if my ticket cancellation?

In case if your ticket is eligible for cancellation, you will get a refund of 65% of ticket value and 65% of VAT.

What is the process in case of ticket modification?

In case of modification with same ticket value and with no modification fees, VAT will not be applied. 
If you modify your ticket with a higher value, you will have to pay the difference between these two tickets in addition to 5% VAT on the difference value only.

Will the contracts entered in to before 1 Jan 2018 be subject to VAT?

Yes, the portion of the contract or the service which is delivered in 2018 will be subject to VAT. 

Will indirect international trips be subject to VAT?

Yes, the part of indirect international trip within KSA will be subject to VAT e.g. trips to Sudan & Egypt

If I purchased ticket in 2017 but use it in 2018 will i need to pay VAT?

Yes, in case the ticket is purchased in 2017 but used in 2018, the passenger will be required to pay VAT before commencing their Journey.

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