The Zakat, Tax and Customs Authority has determined the validity of the circulated passage about the absence of a tax on iron, paint and wires used in preparing the first home of the citizen, and that the latter can recover the value of this tax by submitting its invoices to the Authority.
The authority confirmed that it is not possible for an individual to recover, noting that only licensed real estate developers will be able to deduct input tax, in accordance with the refund controls and relevant rules.
She pointed out that the state bears the tax on real estate transactions at a rate of 5% for no more than one million riyals of the purchase amount of the first house, and it includes ready-made housing units and off-plan sales units only for the citizen, and the royal order does not apply to self-construction or land purchase.