Advertisement
| 19 September, 2017

Saudi to allow VAT payments in installments, with certain conditions

3D Illustration VAT

3D Illustration VAT

shutterstock
Saudi Arabia’s General Authority for Zakat and Tax (GAZT) said it will allow the payment of value-added tax (VAT) charges in installments over a period of up to 12 months, a local newspaper said.

The authority stated this would be allowed if the person or entity being taxed presents evidence that they are unable to pay the tax when due, or are suffering hardship from paying the charges in a single payment.

The taxable person must send a request to the tax authority citing the reasons for inability to pay the tax by the due date. The authority will confirm whether the request is approved or rejected within 20 days.

The installments arrangement has a minimum of four stages, with each covering 25 percent of the value of total VAT charges, Dr. Salem Baagagah told Okaz newspaper. He also noted that such arrangements are suitable for retailers who import wholesale goods and prefer paying the taxes as liquidity flows.

The arrangement can be revoked at any time if the authority sees it fit to protect the public revenues, or if the person fails to pay two installments.

Advertisement
The Saudi tax authority has already opened registration for VAT on its online portal ahead of the official implementation of the tax starting January 2018.

Businesses are required to register for VAT by December 20, 2017 and the tax authority will impose a 10,000 Saudi riyals ($2,666) penalty on companies or entities that do not register within the deadline.

Further Reading:

© Zawya 2017