The General Authority for Zakat and Income has called on businesses subject to value-added tax (VAT) with annual supplies exceeding 40 million riyals to file their tax returns for the months of April and July, no later than August 31 of this year.

The Authority urged taxpayers to promptly file their tax returns via its website, to avoid a late filing penalty of a minimum of 5% and a maximum of 25% of the tax amount that should have been reported, and to avoid a late payment penalty of 5% of the unpaid tax amount.

According to the Value-Added Tax (VAT) Implementing Regulations, businesses whose annual supplies of taxable goods and services exceed forty million riyals must file their returns monthly, no later than the end of the month following the tax period.

Value-Added Tax (VAT) is one of the tax systems in effect in the Kingdom of Saudi Arabia. It is an indirect tax imposed on all goods and services purchased and sold by businesses, with certain exceptions.​