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Do you deliver products domestically within KSA using Fetchr?

You are a business located in KSA, and are using Fetchr to move your products within KSA. Fetchr does cash on delivery (COD) as well as prepaid or credit card (CC) deliveries for you.

Do you deliver products domestically within KSA using Fetchr?

Will I be impacted by VAT?-

Yes. According to the Article 7 of the GCC framework from January 1st, 2018, there will be a Service VAT of 5% that will be charged for all Domestic deliveries as per the authorities. This 5% VAT will be on the Delivery charge.

Example:
Total Amount (pushed by client to Fetchr) = SAR 1,000
Delivery Charge = SAR 40
Service VAT = 5% on 40 = SAR 2
Delivery charges inclusive of VAT = SAR 42
COD remitted back to client = SAR 1,000

If you are a VAT registered business in KSA, you can claim back the SAR 2 through your VAT return from the government

Will there be VAT on COD value?+

No. There will NOT be any VAT on the COD value for Domestic deliveries.

What value will I push to Fetchr system from January 1st, 2018?+

From January 1st, 2018, client will push only the Total Amount value.

What is Total Amount?+

Total Amount is an ALL INCLUSIVE value pushed to Fetchr system same as Commercial Invoice (CI) issued to the customer.

**The currency for Total Amount should always be that of the delivering country, if not Fetchr will reserve the right to convert to the local country currency and Fetchr will carry forward the same value for the rest of the process**

Example:
Customer Location = KSA; Currency of Total Amount = SAR

How can I comply with the law?+

Please click here and fill out the form with the requested details which will make our clients compliant.

How do I plan for VAT?+

It is advisable to hire tax consultants to address tax optimisation at your end. Please note that VAT is not a cost of doing business, it is always borne by the end customer.

All my deliveries are prepaid or credit card, how would VAT impact me?+

Our delivery charges are irrespective of whether it is a Credit Card order or a COD order. We will charge 5% VAT on our delivery charge for credit card/prepaid orders as well.

As a client, I request Fetchr to do multiple deliveries. Will I be charged VAT on all deliveries?+

If Fetchr charges you additionally for the 2nd or 3rd delivery attempt - then there will be a 5% VAT on all the additional deliveries.

Will the invoicing from fetchr look different?+

Yes. It will now comply with the VAT law of KSA.

 

Will I be impacted by VAT?

Yes. According to the Article 7 of the GCC framework from January 1st, 2018, there will be a Service VAT of 5% that will be charged for all Domestic deliveries as per the authorities. This 5% VAT will be on the Delivery charge.

Example:

Total Amount (pushed by client to Fetchr) = SAR 1,000

Delivery Charge = SAR 40

Service VAT = 5% on 40 = SAR 2

Delivery charges inclusive of VAT = SAR 42

COD remitted back to client = SAR 1,000

If you are a VAT registered business in KSA, you can claim back the SAR 2 through your VAT return from the government.

Will there be VAT on COD value?

No. There will NOT be any VAT on the COD value for Domestic deliveries.

What value will I push to Fetchr system from January 1st, 2018?

From January 1st, 2018, client will push only the Total Amount value.

What is Total Amount?

Total Amount is an ALL INCLUSIVE value pushed to Fetchr system same as Commercial Invoice (CI) issued to the customer.

How can I comply with the law?

Please click here and fill out the form with the requested details which will make our clients compliant.

What can I as a client do to not make losses?

It is advisable to hire tax consultants to address tax optimisation at your end. Please note that VAT is not a cost of doing business, it is always borne by the end customer.

This implies that the Total Amount pushed by client to Fetchr is inclusive of all “cost, insurance and freight as well as taxes such as VAT and Customs duty.”

All my deliveries are prepaid or credit card, how would VAT impact me?

Our delivery charges are irrespective of whether it is a Credit Card order or a COD order. We will charge 5% VAT on our delivery charge for credit card/prepaid orders as well.

Will the invoicing from fetchr look different?

Yes. It will now comply with the VAT law of KSA.  

 Who will invoice me?

Fetchr Parcels LLC will invoice your entity for all warehousing and domestic deliveries.

 

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