Saudi Arabia’s General Authority for Zakat and Tax (GAZT) urged businesses with annual revenue below 1 million Saudi riyals to register for value-added tax (VAT) by December 20, 2018, the kingdom’s tax authority said in a press release published on its website.

VAT has been applied on a number of goods and services in the kingdom since January 1, 2018. However, only companies with annual revenues exceeding 1 million riyals ($266,667) were required to register by December 20, last year, according to a previous press statement published on GAZT’s website in September last year. Smaller companies with yearly revenues between 375,000 riyals and 1 million riyals were granted a one-year registration extension that expires on December 20, 2018.

“The General Authority of Zakat and Tax has renewed its call for businesses whose annual revenues exceed SR 375,000 to register for VAT before 20 December 2018 via VAT.GOV.SA.,” GAZT said in statements both in Arabic and English on the authority’s website.

GAZT added that companies which fail to register before the deadline will be subject to penalties. The penalties are detailed in the Saudi VAT law, in articles 39-47 and include a range of fines, including a 10,000 Saudi riyal penalty for failing to register on time, to between 5 percent and 25 percent of any tax that a company should have declared if it fails to submit a tax return on time.

(Writing by Yasmine Saleh; Editing by Michael Fahy)
(yasmine.saleh@refinitiv.com)

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