Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has approved a set of implementing regulations for value-added tax, a press statement said.
The statement said that the authority’s board of directors, chaired by the Minister of Finance Mohammed Al-Jadaan, had approved the rules, which were were published on the official Saudi gazette Umm Al-Qura on 22nd September 2017. These detail how VAT will be implemented in the kingdom ahead of its official introduction on January 1, 2018.
The regulations build on the GCC Unified VAT Agreement as well as the Saudi VAT Law and they are available on the VAT website, which was launched last month. They are divided into 12 chapters and include 79 articles, covering all VAT-related areas.
The Saudi tax authority has already opened registration for VAT on its online portal and businesses are required to register by December 20, 2017.
“Businesses of all sizes have much to do to prepare for the introduction of VAT and GAZT is ready to support them through the process,” said Suhail Abanmi, governor of GAZT. “Ensuring businesses understand the implications of VAT – and the steps needed to prepare – is a priority for GAZT. I urge all businesses to look closely at the regulations and their preparations for VAT, and the resources we have developed.”
The authority will impose a penalty of 10,000 Saudi riyals ($2,666) on companies or entities that do not register by the deadline, but it will allow the payment of value-added tax (VAT) charges in installments over a period of up to 12 months, with certain conditions.