VAT Submission in Saudi Arabia

Has tax season ever left you feeling a little lost? It is not just you! It can be confusing when dealing with the VAT Submission in Saudi Arabia, especially if you are unfamiliar with the country. Reyson Badger can assist you with the VAT Submission in Saudi Arabia and filing requirements, allowing you to concentrate on your business.

What is VAT?

VAT can be thought of as a small fee that is added to most goods and services that you purchase. Saudi Arabia has a standard VAT rate of 15%. In other words, if you purchase a shirt for 100 Riyals (SAR), you will actually pay 115 Riyals (100 SAR + 15 SAR VAT).

What Does Your Saudi VAT Submission Reveal to GAZT?

Your VAT Submission in Saudi Arabia should be viewed as a report card on your VAT activities. It shows the Zakat, Tax and Customs Authority (ZATCA) :

• The total amount of VAT you collected on sales.
• The total amount of VAT you paid on your purchases.
• The difference between these two amounts (this is what you might owe the government or get refunded).
   

Who is Accountable for VAT Submission in Saudi Arabia?

Businesses that generate more than a certain amount of revenue in a year are required to register for VAT and file returns. Currently, this amount equates to 40 million Saudi Riyals. Understanding the regulations surrounding VAT tax Saudi Arabia is crucial for ensuring proper registration and timely filings.

• Monthly Filers:  Companies with annual revenue exceeding 40 million Saudi Riyals must file VAT returns on a monthly basis.
• Quarterly Filers: Businesses making less than 40 million SAR per year are required to file VAT returns every quarter (3 months).

How do you File a VAT Submission in Saudi Arabia?

Fortunately, submission takes place online! In order to submit your VAT returns, you can use the handy Portal provided by the Zakat Tax and Customs Authority (ZATCA).

Step-by-Step Breakdown of Online VAT Submission via the GAZT Portal:

• Access GAZT's Official Website: Begin by opening your web browser and navigating to the official website of the General Authority of Zakat and Tax (GAZT).
• Locate E-Services: Find the section on the GAZT website that is labeled "e-services" or “electronic services.”
• Navigate to the VAT Portal: Within the e-services section, locate and click on the link that directs you to the VAT portal or VAT e-services.
• Login or Register for an Account: If you have an existing GAZT portal account, enter your login credentials. If you are a new user, register for an account by following the on-screen instructions.
• Complete Two-Factor Authentication: Complete any required two-factor authentication steps, to ensure account security.
• Find the VAT Returns Section: Once logged in, find the section related to VAT returns or VAT filing.
• Select the Correct Filing Period: Choose the appropriate VAT return filing period (monthly or quarterly) for your submission.
• Enter Sales Information: Enter the total value of your taxable sales for the selected period and Enter the Output VAT collected from those sales.
• Enter Purchase Information: Enter the total value of your taxable purchases for the selected period. Enter the Input VAT paid on those purchases.
• Verify Calculated VAT: Review the net VAT payable or refundable, which the portal calculates automatically. Compare the portal's calculations to your records.
• Submit the VAT Return: If all information is accurate, click the "Submit" or "File Return" button. Confirm your submission as prompted.
• Complete Payment (if applicable): If you owe VAT, proceed to the payment section and complete the transaction using the available payment methods.
• Acknowledge Refund (if applicable): If you are due a refund, acknowledge the refund information and follow any further instructions.
• Obtain Submission Confirmation: Save or print the confirmation message or receipt as proof of your submission.
• Maintain Records: Keep digital or physical copies of all submitted VAT returns, payment confirmations, and supporting documentation.

For a deep Knowledge of ZATCA registration in Saudi Arabia Click here

Why Choose Reyson Badger for Your Saudi VAT Needs?

• Expert Compliance: Deep KSA VAT knowledge, ensuring accurate, timely submissions.
• Personalized Solutions: Tailored service to meet unique business needs.
• Efficient Problem-Solving: Clear communication and proactive issue resolution.
• Local Market Insight: Understanding of KSA's specific business and tax environment.
• Reliable Optimization: Professional service to minimize VAT burden.

If you have any queries regarding VAT Submission in Saudi Arabia, feel free to get in touch with Reyson Badger. We also offer comprehensive VAT services in UAE to support your business with compliance and reporting. Our experts are well-versed in all aspects, including efficient VAT Return Filing in Saudi Arabia.

FAQs

1. What is the deadline for paying the final VAT tax bill in Saudi Arabia?

The final tax bill must be paid within 120 days of the end of the financial year.

In addition, three equal amounts of tax must be paid in advance. These are paid on the last day of the sixth, ninth, and 12th months of each calendar year. Each of these advance payments is 25% of what was owed in taxes last year, minus any tax already taken from the income. Those owing less than SAR 500,000 are not required to make these advance payments. Late payments will incur a penalty.

2. How does ZATCA select companies for tax inspections in Saudi Arabia?

ZATCA does not have a specific method for checking taxes. However, they usually select companies for inspection based on the size and ownership of the company. They have also developed something called a "risk engine" to assist them in selecting which companies to examine, but it has not yet been tested.

3. Within what timeframe can ZATCA adjust tax bills after the submission deadline?

Tax bills can be changed by ZATCA within five years of the deadline for submitting tax information. In the event that someone has not provided their tax information or it is inaccurate as a result of avoiding taxes, ZATCA is able to correct it within ten years.

4. How long does a taxpayer have to request a refund for overpaid taxes in Saudi Arabia?

A taxpayer who paid too much tax may request a refund within five years of the end of the tax year.