Value Added Tax (VAT) ضريبة القيمة المضافة
Definition
An indirect tax of 15% on goods and services, charged by the contractor on its progress claims and against which it deducts the tax on its purchases in its return.
Example
A claim of SAR 800,000 carried SAR 120,000 of tax.
Where it is used
Invoicing, returns and calculating the net amount due.
Related terms
From the term to the work
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