SKP Group
SKP GCC VAT Alert
4 September  2017
Update on VAT registration rules

General Authority of Zakat and Tax (GAZT) - The Kingdom of Saudi Arabia has opened the online portal for VAT registration from 28 August 2017.
 
Mandatory registration
All companies, businesses or entities which make an annual taxable supply of goods and services in excess of SAR 375,000 are legally required to register for VAT by 20 December 2017.
 
However, all taxable persons whose annual taxable supplies exceed the mandatory registration threshold but do not exceed SAR 1,000,000 will be exempted from the requirement to register until 20 December 2018.
 
Voluntary registration
Businesses which make an annual taxable supply of goods and services in excess of SAR 187,500 are eligible for voluntary registration. Voluntary registration may be beneficial since it allows set-off of the tax paid on inward supplies against the output tax liability.
 
Registration procedure
In order to register for VAT, businesses must first be registered at GAZT.
 
Some large companies, particularly those already registered for various other taxes in Saudi Arabia, will be auto-registered for VAT by GAZT: 
  1. If this applies to a company, the company will receive a notification from GAZT notifying this.
  2. In that case, it is advised to log in and check the validity of the information and to upload any supporting documents that may be required, on the following link: https://gazt.gov.sa/.
If a company is not auto-registered, registration is open to all eligible companies and businesses starting 28 August 2017 also through the following link: https://gazt.gov.sa/.
 
The registration form will require the company to specify: 
  • Whether you are an importer or exporter;
  • IBAN number (for refunds) – not required if already logged with GAZT;
  • VAT eligibility start date;
  • VAT taxable supplies (expected over next 12 months);
  • VAT taxable supplies (past 12 months);
  • VAT taxable purchases (expected over next 12 months);
  • VAT taxable purchases (past 12 months);
  • Financial representative’s detail (only mandatory if you are not a Saudi resident)
SKP comments
With the VAT Registrations portal now activated by the KSA authorities, it is imperative for the business to analyse the VAT registration applicability and initiate the process of registration wherever necessary.
SKP
Emirates Financial Towers | 503-C South Tower | DIFC | PO Box 507260 | Dubai | UAE
+91 22 6730 9000 |
skp.uae@skpgroup.com | www.skpgroup.com

 
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DISCLAIMER
This update contains general information which is provided on an "as is" basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

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