Saudi Arabia’s tax agency, the General Authority of Zakat and Tax (GAZT), have made a further clarification regarding the new VAT Law and Implementing Regulations.
Tag - Saudi Arabia
Saudi Arabia's tax agency, the General Authority for Zakat and Tax (GAZT), has issued a reminder to taxpayers that all enterprises registered for the territory's new VAT regime, whose supplies exceed SAR40m (approx. EUR8.5m) annually, must file their tax returns on a monthly basis.
As reported last week (see news here), following the last ECOFIN meeting held in Brussels on 5th December, when the EU Ministers agreed that 17 countries did not meet the tax ‘good governance standards’, the UAE expressed its disappointment for the inclusion on the list of tax havens.
Businesses in Saudi Arabia with annual revenue of over SR 1million have just days to register for VAT prior to the kingdom’s adoption of the tax on 1st January. Failure to do so will risk high monetary fines and suspension of work permits and visas.
GAZT, Saudi Arabia’s General Authority for Zakat and Income Tax has set a deadline of December 20th for VAT registrations and has urged businesses, which fall within this category, to ensure they understand the new procedures and requirements.
Further to the posting last week regarding the UAE issuing their new VAT Law, a second member of the Gulf Cooperation Council (GCC) has subsequently followed suit. Saudi Arabia has officially published their finalised VAT Bylaws in the Saudi Gazette and and it is confirmed VAT reporting will be required from January 1st 2018.
The official Saudi Arabia tax authority has set a December 20th deadline for mandatory VAT registration. This ends a period of speculation which, due to an ambiguous clause in the Saudi VAT law published on July 28th, led some to believe that businesses liable to pay VAT had only until August 27th to register.
Saudi Arabia's General Authority for Zakat and Tax (GAZT) has launched a public consultation on the draft law governing VAT, which is being introduced in Saudi Arabia and in the other Gulf Cooperation Council countries from January 1st 2018.