The Saudi Department of Zakat and Revenue, while reminding about the value-added tax (WAT) on the sale and purchase of used vehicles, said that the system does not charge VAT on the purchase of vehicles from unregistered persons. In response to a query, he asked if Saudi Arabia has a value-added tax on used cars.
According to Saudi media, the Zakat and Revenue Department said on its Twitter account that if the old car was sold by a person registered in a showroom or value added tax system, then value added tax will be levied on it. Zakat Department The revenue pointed out that if the vehicle was sold by a person who is neither registered in the value added tax system nor does he trade in vehicles, then value added tax will not be levied.
It is to be noted that in Saudi Arabia, 5% was collected in watts till last year, after which the proportion has been increased to 15%, watts are paid on every purchase while service providers and companies also Are bound.
Taxpayers are assigned a special computerized watt number to each company or commercial firm and service provider that is registered in the watt system. The agency has also warned consumers that if any shop Complaints can be lodged with the company against the company for collecting tax without watt number.
