Saudi private sector firms must have their accounting departments ready to adopt electronic billing systems from the beginning of 2017, an official at the Ministry of Commerce and Investment told Saudi newspaper Al Eqtisadiah.
The mandate will be gradually enforced by the Department of Zakat and Income Taxes (DZIT) and comes ahead of the introduction of new taxes across the kingdom over the next two years. The new taxation initiatives are part of the Saudi government’s aim to diversify its revenue streams while oil prices remain low.
Ahmed bin Abdullah Al Moghames, Secretary General, Saudi Organization for Certified Public Accountants (SOCPA):
“The transition to e-billing is a key decision that paves the way for imposing sales tax in the kingdom.”
Saudi Arabia plans to impose a 5 percent value-added tax as a part of a unified Gulf Cooperation Council agreement, which will take effect from the start of 2018.
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