Saudi Arabia drops VAT fiscal representative
- Jul 29, 2019 | Richard Asquith
Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has dropped the requirement for foreign VAT-registered businesses to appoint a local fiscal representative. The measure was implemented on 18 July 2019.
VAT was introduced in the Gulf state at the start of 2018. Until now GAZT had required non-resident businesses appoint a special local VAT agent for registraiton, filngs and VAT payments. This was to aid their communications. Going forward, foreign tax payers without a fiscal representative will have to appoint a local accountant for record-keeping. But they will now be able to liaise with the tax authorities directly through the GAZT portal, which covers filings and payments.
Foreign tax payers without a fiscal representative will also be required to make a cash deposit or bank guarantee with GAZT to cover any future VAT liabilities. This will be assessed at approximately six months’ VAT liabilities.