Importing Used Cars and VAT Regulations in Saudi Arabia

Importing Used Cars and VAT in Saudi Arabia

Inquiry About VAT

The Saudi Customs Department responded to an inquiry on its official Twitter account regarding whether the value-added tax (VAT) applies to the import of used cars for personal use. The response clarified that "customs duties of 5% are applied to the vehicle's value, and a 15% VAT is calculated on the total value of the vehicle including customs duties."

Conditions for Importing Vehicles

Anyone wishing to import vehicles into the Kingdom must be aware of the following conditions:

• The vehicle's age must not exceed five years for passenger cars, light trucks, and buses.
• The vehicle's age must not exceed ten years for heavy transport vehicles.
• The age of the vehicle is calculated in descending order, excluding the current year.
• Vehicles over 30 years old can be imported without restrictions.