ZATCA seeks public feedback on draft regulations to levy VAT on used vehicles

Logo of the Zakat, Tax and Customs Authority (ZATCA)

Saudi Arabia's Zakat, Tax, and Customs Authority (ZATCA) seeks public feedback on the draft regulations on the criteria to classify used vehicles as commodities subject to the value-added tax.

The draft regulations are available on Istitlaa platform until Jan. 30, 2023. They seek to apply a profit margin formula for VAT on used vehicles.

These regulations stipulate that the vehicle should be registered in Saudi Arabia, should have been used for personal or business purposes, and should not be subject to radical changes that affect its original nature.