Tuesday, May 12, 2020
New VAT tax of Saudi Arabia is one of the lowest among advanced Economies
Saudi Arabia's new VAT rate of 15% from 1st July 2020 is still comparatively low to the most developed economies, The data from the Organization for Economic Cooperation and Development (OECD), A group of major economies, shows the average VAT rate across members who had the tax in place stood at 19.3% reports Al Arabiya. Related : Saudi Arabia to increase VAT tax from 5% to 15% from July 2020
While, In Europe the average is more higher averaging to 21.4% with VAT across OCED member states, Here is the list of VAT rate of all countries compared to the new VAT of Saudi Arabia.
1. Hungary : 27%
2. Denmark : 25%
3. Norway : 25%
4. Sweden : 25%
5. Finland : 24%
6. Greece : 24%
7. Iceland : 24%
8. Ireland : 23%
9. Poland : 23%
10. Portugal : 23%
11. Italy : 22%
12. Slovenia : 22%
13. Europe average : 21.4%
14. Belgium : 21%
15. Czech Republic : 21%
16. Latvia : 21%
17. Lithuania : 21%
18. Netherlands : 21%
19. Span : 21%
20. Austria : 20%
21. Estonia : 20%
22. France : 20%
23. Slovak Republic : 20%
24. United Kingdom : 20%
25. OECD average : 19.3%
26. Chile : 19%
27. Germany : 19%
28. Turkey : 18%
29. Israel : 17%
30. Luxembourg : 17%
31. Mexico : 16%
32. New Zealand : 15%
33. Saudi Arabia : 15% (From 1st July 2020)
34. Australia : 10%
35. South Korea : 10% See Also : Zamzam water to be available at Al Othaim and Lulu Hyper after Panda
36. Japan : 8%
37. Switzerland : 7.7%
38. Canada : 5%
- Not all countries collects VAT, Many like US, They collect Sales Tax, which is collected by retailer, when a product has reached the end of supply chain at the end consumers footing the bill. See Also : Saudi Arabia ranks 4th in terms of 5G Network worldwide
