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Thu 22 Nov 2018 10:42 AM

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Saudi tax authority urges VAT registration by Dec 20

Companies who fail to register for the tax on time will be subject to penalties as per VAT law and regulations

Saudi tax authority urges VAT registration by Dec 20
A Saudi jeweller arrives to open his shop in the Tiba gold market in the capital Riyadh. In August, the General Authority for Zakat and Tax (GAZT) discovered 323 VAT-related violations in the retail industry alone. Photo: FAYEZ NURELDINEAFPGetty Images

Saudi Arabia has again called on businesses whose annual revenues exceed $99,900 (SR375,000) to register for VAT before December 20.

In August, the General Authority for Zakat and Tax (GAZT) discovered 323 VAT-related violations in the retail industry alone. It said companies who fail to register for the tax on time will be subject to penalties as per VAT law and regulations.

Both Saudi Arabia and the UAE introduced the tax on January 1, 2018 after GCC countries agreed to impose it across the region. It was introduced at a standard rate of 5%.

VAT-related violations include the failure to present VAT registration certificates and use proper invoice forms with individual and unique tax numbers. The issuance of invalid invoices is also an offence.

Since the introduction of the tax, GAZT has carried out a number of awareness campaigns to help ensure its proper application.

It has also encouraged customers to use the VAT application system to help them identify businesses that are VAT registered.

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