Article 17 of the Saudi Value Added Tax Law
المادة 17 من نظام ضريبة القيمة المضافة · الفصل السادس: الاستيراد
The article refers to the Regulations the conditions for exempting personal luggage and gifts accompanying travelers, and the supplies of persons with special needs, in line with the Unified Customs Law.
Official text (Arabic)
This article has not been amended since the law was issued.
تحدد اللائحة الشروط والضوابط اللازمة لإعفاء الأمتعة الشخصية والهدايا التي ترد بصحبة المسافرين، ومستلزمات ذوي الاحتياجات الخاصة، من الضريبة، وذلك بما يتوافق مع نظام (قانون) الجمارك الموحد.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 17 explained in plain English
This article deals with exemptions from value added tax connected to import, and concerns three categories:
- Personal luggage that comes with travelers.
- Gifts that come with travelers.
- Supplies for persons with special needs.
What does the article provide?
- The article does not grant the exemption in absolute terms; it leaves it to the Regulations to set the conditions and controls for it.
- It requires that this be in line with the Unified Customs Law.
- The qualifier "that come with travelers" is attached in the text to personal luggage and gifts.
What the article does not specify: it states no limit on the value of the exempt luggage or gifts, and it does not say what counts as supplies for persons with special needs. These details are found in the Regulations and the Unified Customs Law.
Relation to other articles: it comes after Article 16, which provides that tax falls due on import into the Kingdom under the Agreement; this article represents a regulated exception to that rule for specified categories, subject to the conditions of the Regulations.
Anyone unsure whether the exemption applies to what they carry when traveling can refer to the conditions set by the Regulations and to customs procedures before traveling.
Practical example
Noura returned from a trip abroad carrying her personal luggage and some gifts for her family. This luggage and the gifts may be exempt from value added tax because they came with her as a traveler, provided the conditions and controls set by the Regulations are met, in line with the Unified Customs Law.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 17 of the Saudi Value Added Tax Law
Are gifts a traveler carries exempt from VAT?
Gifts that come with travelers can be exempted under conditions and controls set by the Regulations, in line with the Unified Customs Law.
Are supplies for persons with special needs exempt from the tax?
The article provides for their exemption under conditions and controls set by the Regulations, in line with the Unified Customs Law.
Is there a limit on the value of exempt luggage?
The article states no limit and leaves the conditions and controls to the Regulations.
More articles on VAT on Imports
- Article 15
The article sets the value of imported goods under the Unified Customs Law and refers to the Regulations the fair market value conditions and adjusting the value of supplies between related persons.
1- تحدد قيمة السلع المستوردة وفقاً للأحكام المنصوص عليها في نظام (قانون) الجمارك الموحد. 2- تحدد اللائحة الشروط التنافسية اللازمة لتحديد القيمة السوقية العادلة
- Article 16
The article provides that tax falls due on import into the Kingdom under the Agreement, and requires the importer to provide a guarantee covering the tax when it is suspended by customs.
1 - تستحق الضريبة عند الاستيراد إلى المملكة، وفقاً للأحكام المنصوص عليها في الاتفاقية. 2 - في حالة تعليق الضريبة على استيراد السلع وفقاً لنظام (قانون) الجمارك ا
- Article 28
The article makes the General Customs Department responsible for collecting tax on imports, and allows the Authority to permit deferring its payment on goods imported for economic activity, which must be declared in the return.
1 - تتولى مصلحة الجمارك العامة تحصيل الضريبة المستحقة عند الاستيراد، وفقاً للإجراءات المتبعة لديها، وتحويلها إلى الحساب الذي يُحدد بالاتفاق بين وزارة المالية وا
- Article 39
The article defines the forms of tax evasion: submitting incorrect or forged documents or returns with intent to evade, and bringing goods or services in or out in violation of the laws without paying the tax.
يعد ما يأتي تهرباً ضريبياً: 1 - تقديم مستندات أو إقرارات أو سجلات أو معلومات غير صحيحة أو مزورة أو مصطنعة بقصد التهرب من تأدية الضريبة المستحقة، أو تخفيض قيمتها
- Article 50
The article makes the Authority responsible for administering, examining, assessing and collecting the tax and taking the procedures it sees fit, subject to customs' role in collecting import tax under Article 28.
مع مراعاة ما تقضي به المادة (الثامنة والعشرون) من النظام، تتولى الهيئة مسؤولية إدارة وفحص وتقييم وتحصيل الضريبة، ولها في سبيل ذلك اتخاذ ما تراه من إجراءات.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.