Important Warning: Do not claim the tax status of a specific product or service. Tax classification depends on ZATCA (Zakat, Tax and Customs Authority) guidelines and may change.
Health Insurance and Value Added Tax:
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Health insurance is subject to Value Added Tax at a rate of 15% in the Kingdom of Saudi Arabia. When a customer receives a health insurance invoice that includes Value Added Tax, they can record it as a purchase invoice in Qoyod by specifying the tax rate of 15%.
If the customer needs formal confirmation of a specific tax status, direct them to contact ZATCA directly.
Exempt and Zero-Rated Products:
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Some products and services may be exempt or subject to zero rate according to the authority’s classification.
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When a customer asks about a specific product (such as scrap iron, food items, medicines, etc.), clarify that the classification depends on the authority’s guide and we cannot claim the tax status on our side.
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Direct the customer to refer to the VAT Guide issued by ZATCA or contact the authority directly to confirm the product’s classification.
How to Register Products According to Their Tax Status in Qoyod:
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Product Subject to Tax (15%): When creating the product or adding it to an invoice, select the tax rate of 15%.
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Exempt Product: Choose “Exempt” or add a tax type at 0% from: Settings > Taxes > Add new tax at 0% and name it “Exempt”.
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Product Subject to Zero Rate: Same method, add a tax type at 0% and name it “Zero Rate”.
General Rule: If you are not certain about the tax status of a product or service, do not guess; direct the customer to the authority directly to obtain formal confirmation.
