Goods exempt from value-added tax are those upon which the tax is not levied, and the associated input tax is not deductible.
Value-added tax
Value-added tax is an indirect tax imposed on all goods and services bought and sold by businesses, with some exceptions. These exceptions include tax-exempt goods and services, goods and services subject to a zero-rated tax, goods and services with value-added tax incurred by the state, and goods and services outside the scope of the tax.
Goods and services exempt from value-added tax
Sale of commercial and residential real estate.
Sale of used residential real estate.
Lease of residential real estate.
Financial products based on profit margins.
Operating current accounts, deposits, and savings.
Life insurance and reinsurance services.
Interest or lending fees charged with an implicit profit margin on any form of lending, including credit cards.
The interest or lending fees charged with an implicit profit margin on financing, including lease financing.
Issuing or transferring debt security and bonds.
Life insurance.
Personal protection insurance.
Personal protection and saving insurance.
Other personal protection and saving insurance.
Group protection insurance.
Group protection and saving insurance.
Other group protection and saving insurance.
Zero-rated goods and services
Transportation services for goods and passengers within the Kingdom and related transportation services.
Qualified international transportation means (vehicle, vessel, aircraft) with specific specifications.
Spare parts, consumables, and maintenance and repair services specific to qualified transportation means (under special conditions).
International transportation.
List of qualified medicines and medical supplies.
Supply of investment metals (gold, silver, and platinum) if their purity level is not less than 99 percent and they are tradable on the global bullion market.
Exporting goods outside the countries of the Gulf Cooperation Council (GCC).
Services provided to non-GCC residents and enjoyed and utilized outside the GCC countries.
Goods and services with value-added tax incurred by the state
Citizens benefiting from private education services.
Citizens benefiting from private healthcare services.
Goods and services outside the scope of the tax
Public education.
Healthcare services in public health centers.
Public services provided by government entities and not intended for economic activity, such as renewal of passport and driver's license, etc.
The activity performed by employees insofar as they are bound to an employer by contract (salaries of employees affiliated with the employer).
Supplies made between members of one tax group.
Insurance for properties located outside the Kingdom.
Engineering insurance - insurance for sites located outside the Kingdom.
Sale of goods on behalf of or in the name of the policyholder.
Settlement of cash claims for the insured under the insurance policy.
Replacement of insured goods under the insurance policy.
Performance of repairs or other services as the primary supplier on behalf of the insured under the policy.
Receipt of payments from reinsurance agreements.
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