Less than a month remains before the implementation of the value-added tax, which will take effect on January 1, 2018, In this context, the General Authority for Zakat and Income has called on all businesses with annual revenues exceeding one million riyals to accelerate their preparations for the implementation of the system.
The Authority has urged all businesses with taxable annual revenue exceeding one million riyals to register for the tax by December 20, 2017, while businesses with annual revenues ranging from 375,000 to 1,000,000 Saudi riyals were granted an extension until December 20, 2018, to complete the tax registration process. The Authority emphasized the need to visit the Value-Added Tax (VAT) website at VAT.GOV.SA to review the various tax procedures and requirements, and to follow the necessary steps to ensure readiness and compliance with tax regulations and rules, including accounting and information technology systems related to tax operations, and record management through implementing the necessary procedures for filing documents in the specified format, in addition to adopting tax-compliant invoices and filing tax returns by the specified deadlines.
The General Authority for Zakat and Income Tax clarified that delays in registration and compliance will expose non-compliant businesses to fines starting at 10,000 Saudi riyals, and may result in the suspension of various essential government services, such as the issuance of work permits and visas, services related to changing a business’s activity and transferring workers, and other government services provided by the Ministry of Commerce and Investment, the Ministry of Labor and Social Development, and the Ministry of Municipal and Rural Affairs, as well as the Saudi Customs Authority and the Saudi Arabian Monetary Authority.
The General Authority for Zakat and Income confirmed that the value-added tax will take effect on January 1, 2018, urging businesses to complete their preparations as soon as possible, especially since there are only three weeks left until the December 20, 2017, deadline for large businesses to register for the tax.
The General Authority for Zakat and Income Tax reiterated its support for businesses as they prepare for the tax’s implementation and encouraged them to contact the Authority through available channels should they have any questions regarding the tax.
