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 Large businesses

​​​​As a large business, you have been engaged with a VAT representative from the General Authority of Zakat and Tax (GAZT), to begin your VAT readiness process.

T​he following eight-step guide details the requirements for VAT readiness. It is recommended that every large business follows the below steps to ensure that VAT is being implemented smoothly.

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​​​​Further detailing of the readiness steps​
  1. Organisation and Employees Responsibilities
    • Assign responsibilities for VAT-related activities within the organisation
    • Clearly define the interface to GAZT by dedicating a counterpart to engage with GAZT
    • Educate employees about VAT. 
  2. Accounting
    • Classify all business transactions, goods and services according to VAT treatment
    • Reach out to GAZT and agree on the treatment of special cases not covered by the implementing regulations, example: the method for apportionment in the case of partial VAT exemptions​​
  3. Data Record Management
    • Addres​s the ability to generate detailed and complete reporting audit trails that are reconciled to accounting records​​​
  4. Supplier Management
    • Include supplier VAT registration number and certificate in supplier master data
    • Include a VAT clause in supplier contracts​​
  5. Customer Management and ‘Point of Sale’
    • Include a VAT clause in customer contracts
    • Include a customer VAT registration number and certificate in customer master data
    • Address the ability to calculate and display VAT inclusive prices at ‘Point of Sale’ (if applicable)
    • Secure the ability to produce invoices including all legally required VAT fields
    • Set in place a process for treatment of customer bad debts​​
  6. Filing and Payment
    • ​​Establish t​he ability to produce tax reporting including input tax and output tax​​
  7. Compliance and Control
    • Set in place a process for management of updates to VAT regulatory changes
    • Set in place a process to review new business transactions according to their VAT treatment and make appropriate changes
    • Apply business controls to verify proper transactions recording
    • Embed VAT compliance in risk management framework
    • Include a review of VAT processes in all audit scopes and plans​​
  8. Systems and IT
    • Update and configure IT applications to enable performance of VAT processes
    • Establish VAT-appropriate data architecture and management systems​
Example of readiness of Large Businesses:​
  1. How did SABIC get ready for VAT?​
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​​​​You could access the readiness tracker checklist document on the following link .

For more information on your VAT readiness process, you can contact a VAT agent on our direct hotline or directly contact your VAT relationship manager if you were assigned one.​​​

For all VAT related queries:​

  • Please call 19993 (toll free). Open for 24 hours a day, 7 days a week
  • Or please email us on: vat@gazt.gov.sa​​​
  • Or you can visit the link