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The value-added tax (VAT) has introduced new sectors for small and medium enterprises (SMEs) such as consultancies and development of taxpayers applications, said Suhail Abanmi, governor of General Authority of Zakat and Tax (GAZT) on the sidelines of the first Zakat and Tax Conference held today in Riyadh.
The VAT implementation also helped the authority collecting accurate data about facilities, and linking it to other several Zakat and tax categories, he added.
“By end of 2017 and before launching the VAT, 90% of taxpayers were registered,” Abanmi said.
Additionally, the VAT helped diversifying sources of income with more than expected returns.
“Facilitating communication with taxpayers through e-invoicing is a key goal for 2020,” Abanmi noted.
Abanmi also highlighted that the tobacco consumption in Saudi Arabia dropped by over 44% after imposing the selective tax.
The selective tax returns exceeded 120%, with a 100% compliance,” he concluded.
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