Saudi Arabia to extend VAT to e-commerce

​Saudi Arabia will impose the value added tax (VAT) on all imported merchandise including items sold online or via mobile applications, the General Authority of Zakat and Tax said.

As for used items and cars, the VAT will be imposed in case of trade activities and not on personal sales and purchases.

Traders who buy and sell used cars will have to pay the value added tax on their profit margin not on the basic value of the car.

Some sectors, which will be specified in the future, will be fully or partially exempted from paying the VAT based on their activities, the tax authority said.

Argaam earlier reported that the VAT will be imposed as of next year on all merchandise except those exempted, and will be calculated based on the difference between the cost and the sale price.