Pacts with govt agencies signed for VAT implementation


Saudi Gazette report

Riyadh — The General Authority for Zakat and Tax (GAZT) will sign a cooperation agreement with the Ministry of Municipal and Rural Affairs to facilitate the compliance of businesses on Valued Added Tax (VAT).

Similar agreements were signed with the Ministry of Labor and Social Development and Saudi Customs.

The agreement is part of GAZT’s wider efforts to encourage businesses to register for VAT ahead of the registration deadline on Dec. 20, and to promote coordination between government agencies to ensure the compliance of businesses with tax requirements.

“Through these agreements, GAZT seeks to encourage businesses to register and achieve readiness ahead of the launch of VAT. We are making every effort to reach out to businesses and provide them with the support and services they need to understand VAT,” said Governor of GAZT Suhail Abanmi.

“Businesses have a lot to do to prepare for VAT, and GAZT is doing everything in its power to help businesses and raise their readiness,” he said, adding that businesses whose annual revenues exceed SR1,000,000 must register through the VAT.GOV.SA before Dec. 20.

Hamad Al-Omar, spokesman of the Ministry of Municipal and Rural Affairs, praised the efforts made by GAZT to ensure the implementation of VAT, acknowledging the steps taken by the Authority to support the business sector.

He said: “We are pleased to be working alongside GAZT to support the smooth implementation of VAT in line with the nation’s interest.”

Under the Unified VAT Agreement of the Gulf Cooperation Council (GCC), all businesses with annual revenues of over SR375,000 are required to register for VAT.

Businesses with annual revenues between SR187,500 and SR375,000 are eligible to reclaim VAT on their input if they register, while businesses with annual revenues below SR187,500 are exempt from registration.

The official VAT website, VAT.GOV.SA, features a wide range of tools and resources to support businesses in their preparations for VAT, including video guides, and information on all aspects of the registration and readiness process, as well as a comprehensive list of the goods and services subject to VAT.