Value Added Tax (VAT) will be levied on power, water and mobile phone bills in Saudi Arabia, Almarsd reported.
The General Authority for Zakat and Tax (GAZT) announced that the VAT would be at the rate of five per cent.
It will also apply to prepaid phone cards, internet cards, unconstructed land transactions, used car transactions, online transactions, repair and maintenance services, consultancy and engineering services.
GAZT public relations director Yahya bin Ashteel said that VAT would take effect early 2018. Housing rents have been exempted from VAT levies.