Everything about taxes for Imports in Saudi Arabia - FAQs

Are imports from outside the GCC taxable?

Yes, imports are taxable unless the product is otherwise specified as exempt. A standard rate of 5% is applicable on imports.

Are imports within the GCC taxable?

Yes, imports within the GCC are taxable at 5% unless the importer can prove that VAT has already been paid on the supply.

What if an unregistered business imports from a GCC country?

If the value of the supply is more than 10,000 SAR, then VAT needs to be paid unless it can be proven that VAT was paid on the supply in the originating country.

Are there any additional duties for imports?

Yes, goods imported to the KSA will be subject to:

• Customs duties
• Excise duties
• Insurance duties
• Freight duties
• Any other fiscal charge (other than VAT itself)
• Any other additional charge as mentioned by the customs department

If I decide to re-import goods that I had previously ordered and returned, do I have to pay import VAT again?

No, the import of returned goods is exempted from VAT, as long as the goods are fully exempted from custom duties as well.

Is VAT imposed on items carried by tourists and travellers?

Low-value items and gifts carried by travellers are exempted from tax. The value threshold is set by the customs department of the KSA.

Which imports are tax exempted?

The following imported goods, which are not subject to customs duties, are also exempted from import VAT:

• Goods for diplomatic and military use
• Imports of personal effects and household appliances
• Imports of returned goods
• Personal items and gifts of low value carried by tourists/travellers.