The Saudi government has increased the rate of VAT from 5% to 15% to support its budget and the economy which is heavily affected by the coronavirus pandemic.
Saudi Government will pay VAT for 3 services
In this regard, the government has announced that it will pay VAT for the following 3 services for its citizens.
- School fees or any other private education.
- Buying the first house provided that its cost does not exceed SR 850K.
- Healthcare in private health centers and hospitals.
Citizens or Residents?
It is worth mentioning that the above decision is only applied to the Saudi nationals. The expatriates and foreigners living in Saudi Arabia would continue to pay VAT at 15% on all services including school fees and healthcare in private hospitals.
Source: Saudi Gazette