Value Tax


Definition of Value Tax:-

Services of selling and selling goods and services, and their price book in 2018 by 5% until entry in 2018 by 5% 15%. Commodities for basic ratios, and there are goods and services imposed on them at a rate of 0%

Who is required to register VAT?

The General Authority for Zakat, Tax and Customs has determined that establishments with annual revenues of less than 187,500 ((() are not required to be registered)

Establishments with annual revenues greater than 187,500 and less than 375,000 riyals (eligible for voluntary registration)

As for establishments over 375,000

(Registration is mandatory).

What is the deadline for submitting a tax return?

The tax return is submitted according to the segments specified by the Zakat and Income Authority. There are those whose annual revenues are less than 40. million that submit reports every four months (quarterly), and there are establishments whose income exceeds 40. million riyals, which submit monthly reports.

What is tax evasion?

A person or group of persons, or institutions and companies deceiving the state by not paying the tax due on them.

What is the penalty for submitting incorrect

documents to evade paying the tax due?

A fine not less than the value of the tax due, and not more than three times the value of the goods or services subject to evasion

Penalty for not registering in the VAT system?

Anyone who does not apply for registration within the periods specified for that in the executive regulations of the value-added tax system shall be punished with a fine of (10,000) ten thousand riyals.

Penalty for filing a wrong tax return?

Anyone who submits an incorrect tax return to the General Authority of Zakat and Income, or amends a tax return after submitting it, or submits any document to the Authority regarding the tax due on him, resulting in an error in calculating the amount of tax is less than the amount due; With a fine equal to (50%) of the value of the difference between the calculated and due tax, and the General Authority for Zakat and Income Tax, according to regulations set by its board of directors, may exempt or reduce the penalty.

Penalty for not filing a tax return?

Anyone who does not submit a tax return within the specified period shall be penalized with a fine of no less than (5%) and not more than (25%) of the value of the tax that he should have declared.

Penalty for issuing an unregistered person a tax invoice?

A financial issue of 100,000, without fail

Penalty for not keeping tax invoices, books and documents?

The tax evasion system in Saudi Arabia punishes anyone who fails to keep tax invoices, books, records and accounting documents during the specified period.

Source: – The guideline for the Zakat, Tax and Customs Authority

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