ECONOMY

Saudi Arabia issues 7 new VAT guidelines to support registered companies

So far 109,898 companies have registered with the VAT system since the implantation of 5% VAT in the Kingdom on Jan. 1. (Shutterstock)

The Saudi General Authority of Zakat and Tax (GAZT) has issued seven guidelines for various sectors related to tax transactions and implementation.

The objective is to help value-added tax (VAT) registered companies.

The guidelines cover the real estate, transport, healthcare, digital economy sectors.

More guidelines for other sectors will be issued soon, the GAZT said in a press statement on Saturday.

The guidelines will be updated periodically.

The GAZT also issued rules for some companies and people practising certain economic activities.

So far 109,898 companies have registered with the VAT system since the implantation of 5% VAT in the Kingdom on Jan. 1.

Last month, the GAZT reminded all enterprises registered for 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 and Implementing Regulations.

Enterprises in this category have been asked to file their January tax returns before the end of February 2018.

Enterprises whose supplies of goods and services total SR40 million or less are required to file tax returns every three months.

The VAT Implementing Regulations require the taxable person or whoever is authorized to act on his behalf to file tax returns latest by month-end.

The GAZT further noted that failing to file the tax return within the required tax period will result in a fine equal to no less than 5% and no more than 25% of the tax amount the enterprise was obliged to file.

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

SHOW MORE
Last Update: Sunday, 4 February 2018 KSA 07:50 - GMT 04:50
Top
BREAKING NEWS

Send to a friend

Close
Saudi Arabia issues 7 new VAT guidelines to support registered companies
Friend's name:
Friend's Email:
Sender's name:
Sender's Email:
Captcha Code
How are we doing?
X

How are we doing?

Name Name *
Email Email *
Country Country
Message Message *
Maximum 550 words allowed