Questions about VAT Returns in Saudi Arabia answered - FAQs

What is a VAT return?

Taxpayers who are eligible for VAT collect VAT for their taxable supplies on behalf of the ZATCA, and pay VAT (that they can claim back later) for their taxable purchases. In order to provide details of these taxable supplies and purchases, taxpayers need to file tax returns, after which they can either collect their VAT refund or pay their tax liability, whichever applies to them.

Tax returns need to be filed by submitting them online through the ZATCA e-portal.

How can I make my tax payments online?

Tax payments can be made through bank transfers using the SADAD payment system.

Can I deduct VAT on purchases using the tax I collect from my buyers? 

If your business is registered under VAT, you may deduct taxes paid from the taxes collected from your buyers and pay the difference to the tax authority.

What is the tax period for businesses with annual taxable sales over 40 million SAR?

Businesses with annual taxable sales over 40 million SAR are required to file monthly returns. These returns must be filed between the first day of the month and the last day of the next month. For example, the returns for the month of January must be filed between the 1st of January and the 28th of February. 

What is the tax period for businesses with annual taxable sales under 40 million SAR?

Businesses with annual taxable sales under 40 million SAR are required to file quarterly returns. These returns must be filed every 3 months, between the first day of the first month and the last day of the fourth month. For example, the returns for January to March must be filed between the 1st of January and the 30th of April.

For group or holding VAT, can the tax return be filed individually for each company?

No, businesses that are registered as a group under VAT must file only one tax return, at the group level.

After being registered as a group under VAT, how soon can I start filing returns as a group?

Businesses that have registered and been granted group registration can only start filing tax returns during the next filing period.

For example, if you file returns on a monthly basis and have been granted group registration in January, then you can start filing for returns as a group beginning in February, which will be due in March.

What can a taxpayer do when they are unable to pay their VAT within their deadline?

If a taxpayer cannot make their VAT payments by the due date, they can make a request to the ZATCA for an extension. The ZATCA will either approve or reject the request within 20 days of submitting the form. The request form must contain the following information:

• The tax liability, or the amount of tax owed

• The tax period for the amount owed

• A valid reason for requesting an extension

What information does a VAT return form require?

The VAT return form requires the following information:

• Standard rated domestic sales

• Private Healthcare/Education sales to citizens

• Zero-rated domestic sales

• Zero-rated exports

• Exempt sales

• Standard-rated domestic purchases

• Imports subject to VAT paid at customs

• Imports subject to VAT accounted for through the reverse charge mechanism

• Zero-rated purchases

• Exempt purchases

• Corrections from the previous period (up to 5,000 SAR)

For goods and services that are sold within the country, but in a foreign currency, how is VAT to be applied?

In such cases, the amount must be converted into SAR on the date the tax is due by referring it to the Saudi Arabian Monetary Authority.

What can a taxpayer do when they need to make changes to a return that they have submitted?

If a taxpayer has made a mistake or needs to change information in a return that they have already submitted, they can do so by submitting a correction form. This form is to be sent to the ZATCA within 20 days of filing the original return form.  If the correction leads to a discrepancy in the tax amount owed (applicable for amounts below 5000 SAR), the change can be made by applying the tax to the taxpayer’s next return.