KSA VAT return deadlines extended due to COVID-19

3 months extension added to the primary due date

As a result of COVID-19, the government of Saudi Arabia announced some extraordinary measures on 20 March 2020 to support registered taxpayers which will enable the business owners to postpone the submission of Value Added Tax (VAT) returns and related payments which fall due within the initiative period (from 18 March to 30 June).  This key measure is intended to help businesses deal with managing cash flows over the next few months.
The new due date will be 3 months from the primary due date (e.g. monthly VAT returns due on 31 March revised due date is 30 June, quarterly VAT returns due on 30 April revised due date is 31 July). Furthermore, fines resulting from the delay in submitting VAT returns and its related payments are exempted. However, fines arising from VAT return examinations and assessments prior to the initiative launch date will not be deferred, although fines imposed during the initiative period will be delayed until 30 June.
The General Authority of Zakat and Tax (GAZT) will accept taxpayer requests to pay by instalment during the initiative period, without requiring a down payment.  In addition to this, expedited refunds of VAT credits will be made upon request.
The details of the initiative pertaining to VAT includes suspension of the following:

  • VAT payments made by registered taxpayers to the General Customs Authority on imports related to their economic activities, and allowing them to pay it through the VAT return of the period which relates to the import  
  • The implementation of procedures to stop services and seizing funds during the initiative period
  • Fines for late payment of installments during the initiative period
  • The imposition of fines for amendment of returns on taxpayers during the initiative period
  • The fine for non-cooperation of the taxpayer and the fine for examination during the initiative period   
  • The requirements associated with requesting to submit bank guarantees to GAZT; and,
  • Deferring the collection of customs duties on imports for a period of thirty days against the submission of a bank guarantee for the next three months. 

These measures will be warmly received by taxpayers; in line with many other G20 governments, the GAZT has seen fit to introduce some strong and helpful measures to assist the private sector during these times. We understand that further details appertaining to the objections and appeals process will be issued in the forthcoming days, although it should be noted that such processes are currently suspended for the time being. We are in constant communication with the GAZT and will continue to update you when formal announcements are made.

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