Riyadh: November 18, 2017:
The General Authority of Zakat and Tax (GAZT) will sign a cooperation agreement with the Ministry of Municipal and Rural Affairs to facilitate the businesses’ compliance with the Value Added Tax (VAT).
The agreement, that follows similar agreements with the Ministry of Labor and Social Development and the Saudi Customs, will be concluded in preparation for the implementation of VAT on January 1, 2018.
The agreement is part of the GAZT’s wider efforts to encourage businesses that haven’t registered yet to register for VAT ahead of the deadline on the 20th of December 2017, and to promote coordination between government agencies to ensure the businesses’ compliance with tax requirements.
GAZT Governor, His Excellency Mr. Suhail Abanmi said; "Through these agreements, the General Authority for Zakat and Tax seeks to encourage businesses to register and get ready ahead of the launch of VAT. We are making every effort to reach out to businesses and provide them with the support and services they need to understand VAT."
He noted that businesses have a lot to do to prepare for VAT. The Authority is exerting the utmost effort to help businesses and support their readiness, Abanmi said, urging qualified businesses whose annual revenues exceed SAR 1 million to register for VAT through the VAT.GOV.SA before December 20, 2017.
Hamad Al-Omar, spokesman for the Ministry of Municipal and Rural Affairs, praised the efforts made by the GAZT to ensure the implementation of VAT, acknowledging the steps taken by the Authority to support businesses and the facilities provided to complete their readiness.
"We are pleased to be working with the GAZT to support the organization and smooth implementation of VAT, in line with the expectations of citizens," said Mr. Al Omar.
Under the Unified VAT Agreement for the Gulf Cooperation Council, all businesses with annual revenues of over SAR 375,000 are required to register for VAT. Businesses with annual revenues between SAR 187,500 and SAR 375,000 are eligible to reclaim VAT on their inputs if they register, while businesses with annual revenues below SAR 187,500 are exempt from registration.
The official VAT website, VAT.GOV.SA , features a wide range of tools and resources to support businesses in their preparations for VAT, including videos, and all information that cover all the aspects of registration and readiness, as well as a comprehensive list of the goods and services subject to VAT.