VAT reporting will be monthly where the annual taxable supplies of the business exceeds Riyals 40 million; otherwise quarterly. Filings are submitted electronically.
Information to be submitted in the return includes:
Standard rated domestic sales
Sales to registered customers in other GCC states
Zero rated domestic sales
Zero rated exports
Exempt sales
Standard rated domestic purchases
Imports subject to VAT paid at customs
Imports subject to VAT accounted for through the reverse charge mechanism
Zero rated purchases
Exempt purchases
Corrections from previous period (up to 5,000 SAR)
Errors and corrections
Corrections above Riyals 5,000 to already submitted returns must be done by a separate electronic communication to correct the return. This must include:
Return period
Amount of VAT being corrected
Reason for correction
Smaller errors may be corrected through subsequent returns
Other compliance issues
Foreign currency invoices must be converted into Riyals at the prevailing rate on the tax due date prescribed by the Saudi Arabian Monetary Authority
VAT due must be paid by the last day of the month following the reporting period
If a return falls due on a non-working day, the return must be submitted prior to the deadline
The tax authorities may offset any VAT credit balance against other taxes due by the taxable business
Payment extensions may be granted in certain cases
Tax payers are subject to formal assessments going back no further than 5 years, including details any VAT due and right to appeal
VAT Credits
Tax payers may claim VAT credits at the time of submission of a return
Approved refunds will be paid within 60 days
Tax payers may roll over the VAT credit
Businesses not VAT registered in the Kingdom, and not supplying a taxable service, may apply to recover VAT suffered on goods or services purchases
