Saudi Arabian VAT returns

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