The General Authority of Zakat and Tax held a VAT workshop in Riyadh
The General Authority of Zakat and Tax (GAZT) held a highly successful workshop on Value Added Tax (VAT), in cooperation with the Riyadh Chamber for Commerce and Industry. The workshop hosted more than 1,500 representatives of various business sectors in Saudi Arabia.
This event is one of a series of initiatives carried out by GAZT across several cities in the Kingdom. It has been designed to ensure better understanding of VAT by businesses and facilitate their VAT readiness. The workshop aimed to help businesses to take the necessary steps in preparing for VAT ahead of its implementation on January 1, 2018.
GAZT noted that according to the GCC Unified VAT Agreement, 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.
The emphasis of the workshop was to highlight the registration requirements for the thousands of SMEs across Riyadh. Those whose annual revenue falls under SAR 1,000,000 will be allowed until December 20, 2018 to register, while those whose revenue exceeds SAR 1,000,000 are required to register before December 20, 2017.
Furthermore, GAZT stressed that all VAT-eligible businesses must take action to issue tax invoices that comply with Article 53 of the VAT Implementing Regulations, which are available at VAT.GOV.SA. Tax invoices are required to include the legal name and address of supplier and customer, invoice issue date, unique invoice serial number, tax identification number of the supplier and customer, and the date on which the supply took place.
Businesses also required to submit VAT returns to GAZT electronically no later than the last day of the month following the end of each tax period, with a monthly frequency for businesses whose annual revenue exceeds SAR 40,000,000 and quarterly for businesses whose annual revenue falls below SAR 40,000,000.
GAZT called on VAT-eligible businesses to register for VAT through the dedicated portal which can be reached through the VAT website (VAT.GOV.SA). In addition to the portal, the website features a wide range of tools and resources for businesses, including video tutorials and information packs on the various VAT registration and readiness aspects.