Post VAT implementation review
The Value Added Tax (VAT) regime commenced on 1 January with a 5% VAT applying on the sale and purchase of most goods and services in the Kingdom of Saudi Arabia (KSA). This represents a major transformation for both the Government and consumers, however, as businesses have the responsibility of ‘collecting the tax’, the greatest challenge is on them to get it right.
We have started to see the General Authority of Zakat and Tax (GAZT) take an increasing level of interest in carrying out audits and visits on companies, and many have found that simple systems or processing errors have led to penalties being applied and assessments being raised for mistakes that could easily have been avoided.
We have designed an approach and methodology to review for post-implementation compliance so that these errors and issues can be identified and fixed. If you have not so far considered a review following the implementation of VAT, we strongly advise carrying out such an exercise to check and validate your compliance.