These goods and services are subject to Saudi VAT

Goods and Services

VAT rate

Foodstuffs

5%

Transportation

Local transportation

5%

International transportation of passengers and goods (intra-GCC)

0%

Domestic passenger and goods transportation and related services

0%

Qualified international transportation means (land, sea, air)

0%

Spare parts, maintenance and repair services for qualified means of transportation (under certain conditions)

0%

Real estate

Sale and rent of commercial property

5%

Sale of residential property

5%

Sale of a residential property for use as a permanent home by the buyer

Untaxable

Rent of hotels, furnished units

5%

Rent of residential property

Exempt

Rent of residential property for students

Exempt

Education

Private institutions

5%

Government institutions

Untaxable

Healthcare

Healthcare services in private centers

5%

Healthcare services in public centers

Untaxable

Medicines and medical equipment as listed by the health ministry and the Saudi Food & Drug Authority (SFDA) 

5%

Oil and Gas (local sector)

Crude oil, derivatives and gas

5%

Investment gold, silver and platinum, jewelry

If purity is no less than 99 percent, tradable in global markets

0%

If purity is less than 99 percent

5%

Telecommunications and electronic services

Wired and wireless telecommunications and electronic services

5%

Financial services

Margin based products

Exempt

Current accounts, deposits, savings

Exempt

Direct fees, commissions, or commercial deductions

5%

Insurance products, including medical insurance

5%

Life insurance and reinsurance services

Exempt

Interest on loans and lending fees charged with an implicit margin including credit cards

Exempt

Interest on loans and lending fees charged with an implicit margin including leasing finance

Exempt

Issuance or transfer of bonds, banknotes

Exempt

 Government services

Public services provided by non-profit government authorities, i.e. passport and driving license renewal, etc.

Untaxable

Others

Export of goods and services to outside the GCC implementing states

0%

Services provided for GCC non-residents who benefit from such services outside the GCC countries

0%

Activities of employees under contracts (employee salaries)

Untaxable

Supplies among members of same tax group

Untaxable