Saudi ministry reveals issuing of 192,310 “first house” VAT certificates
The state bears a part or all of the VAT amount for the citizens’ first residence, depending on the cost of the home
Saudi Arabia’s Ministry of Housing has issued 192,310 value-added tax (VAT) certificates for Saudi citizens who have applied for their first residence on the VAT electronic portal from the launch of the initiative until the end of February 2020.
The Ministry of Housing’s stated that 144,749 certificates were issued to beneficiaries of the ministry’s Sakani programme, while approximately 22,818 certificates were issued for beneficiaries of the Real Estate Development Fund, and another 24,743 certificates were issued to beneficiaries outside the lists of the ministry and the Real Estate Development Fund.
In order to ensure that eligible citizens in Saudi Arabia are able to access appropriate housing, the kingdom has implemented a royal decree for the state to bear a part of the VAT amount, or the whole amount, for the citizens’ first residence, depending on the cost of the home, which has correspondingly raised the home ownership rates among Saudi nationals.
The state’s value-added tax portal automatically checks whether a previous property has been registered under the name of a Saudi citizen, and once it acknowledges that the citizen does not own a home, it permits the citizen to search for a suitable housing unit for purchase, according to the state-run Saudi Press Agency.
Once the primary procedures are completed, the citizen submits a certificate of entitlement to the seller to verify it and ends the transaction between them, following which, the state bears the VAT amount – if the value of the house is in no more than $226,000 (SAR850,000) – after verifying the authenticity of all documents through the electronic tax portal.