According to the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia, residential rental properties are not subject to 15% Value Added Tax (VAT).
ZATCA clarified, however, that commercial leasing or renting is subject to a 15% VAT if it is performed by a registered individual.
Further, the authority emphasized that anyone whose annual revenues reach the mandatory limit of 375 riyals is required to register for VAT.
Earlier, the Zakat, Tax and Customs authority responded to a question on its official Twitter account, in which it said that the Value Added Tax on residential endowments belonging to charities is used for public benefit by the ZATCA. If the lease is made by a person registered with the VAT system, commercial leasing is subject to 15% VAT.
SOURCE : SAUDI EXPATRIATES
