Submitting Value Added Tax (VAT) Returns in Saudi Arabia

To submit VAT returns, taxpayers are required to furnish details regarding the VAT obtained from sales and the VAT paid on purchases through the ZACTA Portal. Businesses are obligated to present information on purchases, costs, sales, output VAT, and input VAT in the specific format mandated by General Authority of Zakat and Tax (GAZT) for VAT returns. 

In Saudi Arabia, GAZT imposes a 15% VAT on most goods and services. You can claim back the amount paid for VAT by submitting a VAT Return. You need to pay VAT on purchases and collect it when you sell products or services. It is essential to file VAT Returns as they contain important information about your purchases, transactions, and provisions.  

During this session, we will be covering the process of filing VAT returns in Saudi Arabia. 

Filing VAT Returns in Saudi Arabia 

A VAT return is a document that includes a self-assessment of the output and input VAT, along with other required information. Taxpayers in Saudi Arabia can conveniently submit their VAT returns online through the ZATCA portal. Submission of VAT returns is obligatory for all eligible individuals registered under the KSA VAT law, even if they have no transactions during a specific tax period. In such cases, a “Nil” return must still be filed for that period. 

What is the deadline for filing VAT Returns? 

Submission of the VAT return is mandatory every three months when the combined yearly sales fall below 40 million Saudi Arabian Riyal. The first reporting cycle begins from January to March and ends in April. The following reporting interval ranges from April to June, concluding in July, while the third period spans July to September, with the deadline set for October. The last reporting phase extends from October to December, concluding in January. 

If total annual sales exceed 40 million Saudi Arabian Riyal, taxpayers must submit VAT returns on a monthly basis, amounting to 12 filings per year. 

Company’s Yearly Threshold	Types of VAT Return Filing
Less than 40 million SAR	Quarterly
More than 40 million SAR	Monthly

To submit a VAT Return, you should file for the subsequent month after the end of the tax period. For instance, if you wish to file for the months of April to June, you must complete the VAT filing before 31st July. 

Extension for payment of VAT 

If you are unable to make timely VAT payments, you have the option to seek an extension from GAZT. Your request must cover the following aspects: 

• Reason for the extension 
• Tax liability 
• Tax period  

You can expect a response to your request within three weeks. Please be aware that your request may be either approved or denied.  

How to submit VAT Returns in Saudi Arabia? 

To file your VAT Returns, please access the GAZT online portal and log in. The form consists of two primary sections: VAT on Sales and VAT on Purchases. Avoid entering values in designated boxes as the Total Sales and Total Purchases will be automatically calculated based on the provided input values. 

The format of the VAT Return necessitates registered businesses to declare the following details: 

• Information about the taxpayer 
• Standard rated sales 
• Private Education/Healthcare 
• Zero-rated sales within the country 
• Exports 
• Sales that qualify for exemption 
• VAT paid at customs impacts imported goods 
• Zero-rated purchases made 
• Items that are not subject to purchase 

In conclusion, comprehending the process of filing VAT returns is crucial for businesses operating within the Saudi Arabian market. By adhering to the regulations established by the General Authority of Zakat and Tax (GAZT), companies can ensure the timely and accurate submission of their VAT returns, thus preventing potential penalties and ensuring compliance with VAT laws.