+44 (0)1273 022400
Saudi Arabian VAT returns
VAT reporting will be monthly where the annual taxable supplies of the business exceeds Riyals 40 million; otherwise quarterly. Filings are submitted electronically.
Information to be submitted in the return includes:
- Standard rated domestic sales
- Sales to registered customers in other GCC states
- Zero rated domestic sales
- Zero rated exports
- Exempt sales
- Standard rated domestic purchases
- Imports subject to VAT paid at customs
- Imports subject to VAT accounted for through the reverse charge mechanism
- Zero rated purchases
- Exempt purchases
- Corrections from previous period (up to 5,000 SAR)
Errors and corrections
Corrections above Riyals 5,000 to already submitted returns must be done by a separate electronic communication to correct the return. This must include:
- Return period
- Amount of VAT being corrected
- Reason for correction
- Smaller errors may be corrected through subsequent returns
Other compliance issues
- Foreign currency invoices must be converted into Riyals at the prevailing rate on the tax due date prescribed by the Saudi Arabian Monetary Authority
- VAT due must be paid by the last day of the month following the reporting period
- If a return falls due on a non-working day, the return must be submitted prior to the deadline
- The tax authorities may offset any VAT credit balance against other taxes due by the taxable business
- Payment extensions may be granted in certain cases
- Tax payers are subject to formal assessments going back no further than 5 years, including details any VAT due and right to appeal
VAT Credits
- Tax payers may claim VAT credits at the time of submission of a return
- Approved refunds will be paid within 60 days
- Tax payers may roll over the VAT credit
- Businesses not VAT registered in the Kingdom, and not supplying a taxable service, may apply to recover VAT suffered on goods or services purchases
