Regulatory Alerts2017-12-06
Bank Customers Awareness Regarding VAT
The Saudi Central Bank (SAMA) issued this circular directing all banks operating in the Kingdom to implement a 5% Value Added Tax (VAT) on bank service fees effective January 1, 2018, while maintaining exemptions for loan amounts, profit margins, account balances, and transfer fees. Banks are required to actively disseminate official awareness messages via their websites, social media channels, and SMS notifications to clearly inform customers about VAT-affected services and registration deadlines. The directive mandates clickable digital banners and news tickers directing users to the official VAT portal, ensuring full regulatory compliance and customer preparedness for the tax rollout.
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