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As part of its ongoing efforts to stimulate the national economy and boost trade flows, it announced Zakat, Taxes and Customs The Kingdom of Saudi Arabia has announced an update to the list of products and goods exempt from customs duties and VAT until 2024. The move comes as the Kingdom is keen to enhance the competitiveness of the local market and meet consumer needs, in addition to supporting important production and service sectors.
Customs Exemptions:
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The 2024 customs exemption list includes a variety of products and goods, the most prominent of which are:
*Basic goods: such as basic food, medicines and medical supplies, aimed at reducing the economic burden on citizens and residents and ensuring the availability of these goods at reasonable prices. *Books and publications: aimed at encouraging reading and knowledge and facilitating access to educational and cultural materials. *Industrial equipment and raw materials: support the industrial sector, enhance its competitiveness and encourage investment in local industries. *Medical equipment and devices: aimed at providing necessary medical care to patients and people in need and facilitating the work of health institutions. *Goods for people with special needs: meet the needs of this group of people and facilitate their daily lives.
VAT Exemption:
The list of services exempt from VAT in 2024 includes some essential services such as:
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* Healthcare services: including medical services provided by hospitals and government health centers, as well as medicines and medical supplies included in the list of exempt goods. * Education services: including tuition fees for public schools and universities, books and teaching materials included in the list of duty-free goods. * Public transportation services: including bus, train and subway tickets. * Some financial services: such as personal remittance services and life insurance services.
Mechanisms that benefit from the exemption:
Importers and exporters can benefit from these exemptions by submitting the required documents to the competent authorities such as Zakat, tax and customs authorities in accordance with the prescribed procedures and controls.
These updates confirm the Kingdom of Saudi Arabia’s desire to provide an attractive economic environment for investment, promote trade flows and meet the needs of citizens and residents. This move also reflects the Kingdom’s commitment to achieving sustainable development and enhancing social well-being.
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