The filing of VAT returns requires taxpayers to submit information on the amount of VAT collected on sales and paid on purchases in the ZACTA Portal. Businesses must submit their sales, purchases, costs, output VAT, and input VAT information in the format required by GAZT for VAT returns.
The GAZT in Saudi Arabia charges VAT at 15% on most goods and services. You file a VAT Return to claim the amount paid for VAT. When you make a purchase, you must pay the VAT and collect it when he sells the products or services. You must file VAT Returns as they comprise details about the transactions, purchases, and provisions you made.
In this session, we discuss the VAT Return Filing in Saudi Arabia.
VAT Return Filing in KSA
A document including a self-assessment of the output and input VAT as well as other necessary information is known as a VAT return. Taxpayers of Saudi Arabia can submit their VAT returns online with the ZATCA portal's assistance. Every taxable person who has registered under KSA VAT law is obligated to submit VAT returns. Filing VAT returns in KSA is a must even if a taxable person has no transactions during a tax period. In such case, he/she must still submit a "Nil" return for that time period.
When Should You File VAT Returns?
You must file the VAT return in every quarter when the total annual sales would be less than 40 million SAR (Saudi Arabi Riyal). The initial filing period is January to March with the deadline being April. While the second filing period is from April to June with a deadline in July, and the third period falls between July & September with October being the deadline. The final filing period is between October and December with the deadline in January.
However, if the total annual sales go above 40 million SAR, being a taxpayer, you must file the VAT returns on a monthly basis. In total, you need to file returns 12 times a year.
Annual Threshold of the Company
Types of VAT Return Filing
Below 40 million SAR
Above 40 million SAR
In order to file for a VAT Return, you must file between the following month of the end tax period. For example, If you want to file for the months of April to June, you have to file VAT before July 31.
VAT Payment Extension
You could request the GAZT for an extension in case you cannot pay VAT on time. The request must include the following points:
- Reason for extension
- Tax liability
- Tax period
The response to your request will be sent in three weeks. You may note that your request could be approved or rejected.
How to file VAT Returns in KSA?
You should log in to the online portal of GAZT to file the VAT Returns. The two main sections on the form are- VAT on Sales and VAT on Purchases. You should not enter any values in specific boxes on the form, as they are calculated automatically- Total Sales and Total Purchases, based on the input values given.
Here is the simple step to e-file the VAT Returns in KSA online,
The VAT Return format comprises the following details to be declared by the registered businesses:
- Details of the taxpayer
- Standard rated sales
- Private healthcare/Education
- Domestic sales that are zero-rated
- Sales that are exempted
- Imports affected by VAT paid at customs
- Purchases that are zero-rated
- Purchases that are exempted
VAT Return Filing Service in Saudi Arabia
At BMS, our expert team of VAT consultants and advisors assist you with filing VAT Returns without consuming more time. We ensure you prepare the required documents for VAT in KSA and stay compliant with VAT regulations declared by the GAZT. Our team also assists you to access the online portal of GAZT so you file the VAT Returns on time, thus preventing you from paying fines.
BMS provides incomparable quality services in any assistance we provide. Do not hesitate to visit our office in Saudi Arabia for clarifications.
For any queries or assistance regarding VAT, Call BMS Auditing Saudi Arabia