First VAT returns to be filed before February end: GAZT

January 23, 2018

RIYADH — The General Authority for Zakat and Tax (GAZT) has reminded all enterprises registered in value added tax (VAT) whose supplies of goods and services exceed SR40 million annually to file their tax returns on a monthly basis, as stipulated by the VAT Law.

As such, enterprises in this category must file their January tax returns before the end of February. Enterprises whose supplies of goods and services total SR40 million or less are required to file tax returns every three months. The first tax returns for this category are to be filed before the end of April.

The VAT regulations require the taxable person or whoever is authorized to act on his behalf to file the tax returns no later than the last day of the month following the end of the tax period.

GAZT pointed out that failing to file tax returns within the required period would result in a fine of between 5 percent and 25 percent of the tax amount the enterprise was obliged to file.

Enterprises in violation will also face a late payment fine equal to 5 percent of the tax amount due for every month or part thereof for which the tax is unpaid, in addition to suspension of several government services.

Enterprises must adhere to the tax return form specified by GAZT in order to provide the required information about the tax amount due on supplies and purchases in a clear and accurate manner. The form includes two separate sections, the first is for the tax due on revenues (output tax), and the second is for tax due on purchases (input tax).

Enterprises will automatically be issued a tax invoice by GAZT containing the invoice number and tax amount due.

Once the invoice is issued, the tax amount due must be paid to GAZT's bank account via the SADAD online payment portal or ATM. Once the payment is made, the enterprise will receive a notice from GAZT confirming the amount paid. — SG

January 23, 2018
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