Saudi Arabia’s General Authority for Zakat and Income Tax (GAZT) is urging businesses with annual revenues of over SR1 million ($266,640) to register for value-added tax (VAT) before its implementation across the kingdom on January 1.
In a statement, GAZT urged businesses to check the procedures and requirements of VAT ahead of the registration deadline of December 20. The deadlines companies with annual revenues between SR1 million and SR375,000, however, has been extended by a year until December 20, 2018.
Registration remains for companies with annual revenues between SR187,500 ($50,023) and SR375,000 ($100,046).
Establishments whose annual revenues or annual costs are between SR185,500 and SAR 375,000 are optional. The optional registration will allow the registered enterprises to recover the tax from their sales inputs.
Companies that fail to register risk fines as high as SR10,000 ($2,667) and the suspension of government services such as the issuing of work permit and visas and sponsorship transfers.
To help facilitate registrations for companies in the kingdom, Saudi Arabia’s official VAT website –Vat.Gov.Sa - has uploaded video tutorials, guidelines and information about the registration process, as well as a complete list of the goods and services subject to VAT.
Additionally, GAZT also announced the introduction of two forms of VAT invoices, according to local media.
The first is a tax invoice for goods and services valued at less than SR1,000 ($266), while a second – and much more detailed – form will be used for gods and services above the same figure.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.