The Saudi government has issued a release confirming that the current 15% VAT rate is meant to be temporary and will last for a period of one to five years at most. The standard VAT rate was increased from 5% to 15% with effect from 1 July 2021, largely in response to greater funding needs resulting from the COVID-19 pandemic. Although no specific rate or date is provided for when the standard VAT rate will be reduced, it is noted that the rate will be between 5% and 10%.