VATLive > Blog > Saudi Arabia > Saudi Arabia delays VAT payments by 3 months on COVID-19 crisis

Saudi Arabia delays VAT payments by 3 months on COVID-19 crisis

  • Oct 6, 2020 | Richard Asquith

6 Oct - fourth quarter VAT filings and payments until 31 December 2020 have been postponed without penalties. This is an extension of the last amnesty which ran up to 30 September.

5 Oct - home sales have been exempted from the 15% VAT levy. Instead, there will be a 5% real estate sales tax.

28 Aug - postponements to 30 Sept of returns and payment plans, including import VAT on customs. Audits on VAT credits postponed. No fines or interest. Failure to VAT register will not incur penalties.

25 July - Q1 and Q2 Value Added Tax returns should be filed by 31 July 2020.

9 July - the deadline for repayment of VAT by businesses which have been granted payment extensions has been moved to 30 September 2020. This is backed with a further suspension of payment collections.

4 July update - there will be accelerated VAT credit repayments to taxpayers

1 July update - Saudi VAT rise to 15% comes into effect.

Saudi Arabia has offered Value Added Tax payment deferments for businesses for three months.

Monthly returns due for February to May will all be delayed to the last days of June to Septemer, respectively. Quarterly returns for Q1 are delayed until 31 July 2020.

There also reliefs from a range of government charges and customs. The measures were announced on 20 March 2020. Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.

The relief is part of a packages for measures to help cope with the coronavirus epidemic. Saudi Arabia has been hit hard economically with the collapse of oil prices in the past month on general recession worries. Brent crude has fallen from $59 to $27 per barrel in the last 30 days. The Kingdom’s budget is based on an assumption of $82 per barrel.

Explore more content like this in our Building for COVID-19 recovery hub

Latest Coronavirus news

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice Webinars

Stay ahead of the curve, sign-up to VAT Voice, our essential monthly round-up of VAT, GST and legislation news