The Saudi Council of Ministers approved the unified agreement on value added tax (VAT) and excise taxes in the Gulf Cooperation Council (GCC) member states.
In a meeting held on Monday Jumada Al-Awwal 2, January 30, 2017 under Custodian of the Two Holy Mosques King Salman bin Abdulaziz, the Council issued a decree to approve the two agreements.
A type of indirect tax, VAT is imposed on the difference between the cost and sale prices of all services and products.
Excise taxes are imposed on "harmful products" such as cigarettes and tobacco as well as fizzy and energy drinks to reduce its harmful effects.
