GAZT organizes VAT workshop at Jeddah Chamber of Commerce
Jeddah, September 25, 2017: In cooperation with the Jeddah Chamber for Commerce and Industry, the General Authority for Zakat and Tax (GAZT) organized a workshop on VAT, which was attended by a large number of
representatives from business and industry.
The workshop is part of a series of events planned by GAZT this month in several Saudi cities which aim to enhance businesses’ understanding of VAT and the steps required to prepare ahead of the implementation of VAT on 1 January, 2018.
GAZT urged all eligible businesses whose annual revenue exceeds SAR 1,000,000 to register for VAT before 20 December, 2017. Smaller businesses whose annual revenue is below SAR 1,000,000 will be given until 20 December, 2018 to complete the registration process.
GAZT also called on all eligible businesses to register for VAT through the website (VAT.GOV.SA), and announced that more than 55,000 companies have already registered since registration opened on August 28, 2017.
According to the Unified VAT Agreement for the GCC, any business whose annual revenue exceeds SAR 375,000 is required to register for VAT, while businesses whose annual revenue is between SAR 187,500 and SAR 375,000 may register voluntarily in order to claim VAT input tax. Businesses whose revenues fall below SAR 187,500 are exempted from registration.
In line with the Agreement, GAZT specified that the sectors that are not taxed with VAT include supplies of medicine and medical equipment and international transportation. In addition, gold, silver and platinum supplies used for investment purposes and supplies outside the GCC are not taxed with VAT.
Furthermore, GAZT confirmed that the registration portal is fully operational and can be reached through the dedicated VAT website (VAT.GOV.SA), recently launched by GAZT. The new website features a wide range of tools to help businesses prepare for VAT, including video tutorials, guides and information packs on various aspects of the registration and readiness process.