20 August 2017

The Saudi General Authority of Zakat & Tax announced through its newly launched official website that businesses are required to register for value-added tax (VAT) by December 20, 2017.

All entities and companies with an annual revenue of more than 375,000 Saudi riyals ($102,104) will be required to register for the tax ahead of its official introduction on January 1, 2018.

The website added that the registration process will open from September 2017. A hotline for all VAT-related inquiries, at 19993, has also been launched.

Large businesses that are already registered for other taxes in the kingdom will be automatically registered and will receive a notification from the authority.

In June 2016, all six Gulf Cooperation Council countries agreed to introduce a 5 percent VAT across the region, in a bid to diversify their economies away from a reliance on hydrocarbons. Saudi Arabia ratified its VAT framework in February 2017.

For full details on the introduction of VAT in the GCC click here for ZAWYA’s Special Coverage.

© Zawya 2017