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Has tax season ever left you feeling a little lost? It is not just you! It can be confusing when dealing with the VAT Submission in Saudi Arabia, especially if you are unfamiliar with the country. Reyson Badger can assist you with the VAT Submission in Saudi Arabia and filing requirements, allowing you to concentrate on your business.
VAT can be thought of as a small fee that is added to most goods and services that you purchase. Saudi Arabia has a standard VAT rate of 5%. In other words, if you purchase a shirt for 100 Riyals (SAR), you will actually pay 105 Riyals (100 SAR + 5 SAR VAT).
Your VAT Submission in Saudi Arabia should be viewed as a report card on your VAT activities. It shows the GAZT:
Businesses that generate more than a certain amount of revenue in a year are required to register for VAT and file returns. Currently, this amount equates to 40 million Saudi Riyals.
Fortunately, submission takes place online! In order to submit your VAT returns, you can use the handy Portal provided by the General Authority of Zakat and Tax (GAZT).
Step-by-Step Breakdown of Online VAT Submission via the GAZT Portal:
For a deep Knowledge of ZATCA registration in Saudi Arabia Click here
How Does ZATCA Verify the Accuracy of Your Company Tax Reporting?
ZATCA examines a company's records to determine if the amount it pays its employees matches what it reports in its records. Also, they examine payments made to individuals who do not reside in Saudi Arabia to ensure the correct amount of tax has been collected. In order to verify whether companies reported the correct amount of imports, they obtain information from the Customs Authority.
Why Choose Reyson Badger for Your Saudi VAT Needs?
If you have any queries regarding VAT Submission in Saudi Arabia, feel free to get in touch with Reyson Badger.
What is the deadline for paying the final VAT tax bill in Saudi Arabia?
The final tax bill must be paid within 120 days of the end of the financial year.
In addition, three equal amounts of tax must be paid in advance. These are paid on the last day of the sixth, ninth, and 12th months of each calendar year. Each of these advance payments is 25% of what was owed in taxes last year, minus any tax already taken from the income. Those owing less than SAR 500,000 are not required to make these advance payments. Late payments will incur a penalty.
How does ZATCA select companies for tax inspections in Saudi Arabia?
ZATCA does not have a specific method for checking taxes. However, they usually select companies for inspection based on the size and ownership of the company. They have also developed something called a "risk engine" to assist them in selecting which companies to examine, but it has not yet been tested.
Within what timeframe can ZATCA adjust tax bills after the submission deadline?
Tax bills can be changed by ZATCA within five years of the deadline for submitting tax information. In the event that someone has not provided their tax information or it is inaccurate as a result of avoiding taxes, ZATCA is able to correct it within ten years.
How long does a taxpayer have to request a refund for overpaid taxes in Saudi Arabia?
A taxpayer who paid too much tax may request a refund within five years of the end of the tax year.