Fatwa Summary: MJLA Fatwa 222770524 (Application of VAT Prior to Entry into Force of VAT Law or VAT Registration)

In a contract that was signed before the entry into force of the Value Added Tax Law, the Ministry of Justice and Legal Affairs (MJLA) held that a contractor was required to pay VAT out of the contract value agreed with the Ministry of Health and that contractor had no basis for adding it as additional charge that the ministry owes to the contractor.