VALUE ADDED TAX (VAT) IN SAUDI
ALRMEH Consultants is dealing VAT in SAUDI for over 2 years now since the implementation of VAT in SAUDI back in 2018. We have dealt and handled over 1500 clients and projects successfully and we have been assisting them to understand scope and laws relating to VAT, and to provide them with specific solutions and answers to their queries according to their specific business model.
ALRMEH Consultants have a wide base of VAT experts who are equipped technically to cater the needs of the clients related to different dimensions of businesses and individuals and to provide best possible solutions to their needs.
VAT in SAUDI was 5% for most of the goods with some exceptions since the implementation but it increased to 15% effective from 1 July 2020.
Based on our past experience in OMAN, BAHRAIN and UAE, we have witnessed that the businesses lack the acumen and resources to be prepared for the implementation of new workflows, processes and systems to comply with VAT regulations, which lead to administrative and financial penalties.
ALRMEH Consultants is assisting businesses to understand the scope of VAT laws and to provide tailored solutions for their specific business needs. Our team of VAT experts is ready to serve you in all your tax related matters.
Saudi Arabian Excise Tax Law is administered and implemented by GAZT. Importers of excisable goods have to be registered under GAZT and upon noncompliance they are treated as tax evaders and penalties are charged.
There are two major types of VAT rates in Saudi as 15% and 0%, In 0% category there are exports of goods outside the council territory, backed by evidence of movement of goods, Supply within custom duty suspension zones, Exports of goods where customer is not a resident within the council territory or consumption does not take place within the council, international transport of goods and passenger, investment of precious metals and Medical equipment and medicines, In 15% is all other taxable goods and services.
ALRMEH Consultants provide full support in all of the above matters related to VAT in SAUDI, We have experienced experts related to VAT, who can deal with every help and solution related to GAZT and VAT in SAUDI.
HOW DOES VAT WORK
If, as a VAT registered person, you make taxable supplies (i.e., supplies of goods or services subject to VAT), you must charge VAT on your supplies, and pay it to the GAZT. This is your “output tax”.
The VAT charged by your suppliers on your business expenses and the VAT you pay on your imports of goods and services is your “input tax”.
As a VAT registered person, you can reclaim from the NBR the input tax incurred on your purchases and imports to the extent that these expenses and imports are used to make taxable supplies. You cannot reclaim the VAT incurred on expenses used for a non-business activity or for making exempt supplies (i.e., supplies of goods or services that are not subject to VAT due to a specific VAT exemption).
On a regular basis, you will file a tax return to the GAZT and pay the excess of your output tax over your input tax. If your input tax exceeds your output tax, you can ask for a refund of this difference from the GAZT or you can carry it forward as a credit to use against future VAT liabilities.
All businesses exceeding a revenue of 375,000 SAR through taxable sales in the past twelve months (or expected taxable sales in the next twelve months) must register, collect tax, and file returns for VAT. Businesses with a revenue between 187,500 – 375,000 SAR through taxable sales in the past twelve months (or expected taxable sales in the next twelve months) can choose not to register for VAT. If a business has a revenue exceeding 375,000 SAR, but makes only zero-rated supplies, then VAT registration is optional.
VAT registrations can be of different types as registration for nonresidents of KSA, Group registrations.
Furthermore registered businesses and individuals in KSA should maintain their relevant records, bills, invoices, and all other documents related to a transaction for at least 6 years after the tax period in which the transaction occurred. The records should be stored inside the country as physical or electronic documents. This rule applies to non-resident taxpayers too.
ALRMEH CONSULTANTS will assist you in all this by solving all complex issues relating to VAT and other fields of your businesses mentioned above to better help you in compliance to all GOVT. laws and regulations.
ALRMEH Consultants is emerging in her services in the field of VAT with success rate of above 95% and over 2000 happy customers, we have a diversified approach and with that we have been solving complex issues of VAT related to different sectors of businesses and different sectors of economy, we are focused on providing the best possible solution to our clients and to guide them to carry their businesses in light and accordance with laws and regulations set by the governing body of VAT in Saudi Arabia.
How ALRMEH Consultants can help you?
- VAT REGISTERATION
- VAT RETURN FILING
- VAT REFUND PROCESSING
- VAT IMPLEMENTATION & COMPLIANCE
- VAT TRAINING
- VAT CONSULTANCY
- VAT COMPLIANT SOFTWARE
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