Announcement about increase the VAT rate to 15%
Announcement about increase the VAT rate to 15%
2020-06-22
Dear Developer/Vendor,
According to the press release issued by the Ministry of Finance on May 11, 2020, regarding raising the value-added TAX rate from (5%) to (15%) starting from the first of July 2020. Based on the transitional provisions guide to increasing the basic value-added TAX rate to 15% issued by the General Authority of Zakat and TAX and based on the above and according to your contract/PO with NHC and its subsidiaries; please Note the following:
• If the contract/ PO is signed before May 11, 2020:
If the contract/ PO is signed before May 11, 2020, and the vendor is continued supplying beyond July 1, 2020, the customer has the right to deduct the inputs TAX in full. The TAX will be applied at a rate of 5% until the date of expiry OR renewal of the contract/PO OR the date of June 30, 2021.
• If the contract/ PO signed between May 11, 2020, and June 30, 2020:
The TAX is applied at a rate of 5% if it was actually supplied before the end of June 30, 2020, and the TAX is applied at a rate of 15% if it was actually supplied on OR after July 1, 2020.