Insights

The KSA has published its final VAT Implementing Regulations

Another step closer to VAT implementation

After publishing its Value Added Tax (VAT) Draft Implementing Regulations for public consultation in July, the Kingdom of Saudi Arabia (KSA) has just released its final bilingual regulations on their website.

Businesses in the country should start preparing and analyzing in detail what the implications are on their operations especially that taxpayers have now been provided with the full legal detail to understand the potential impact of VAT, and their obligations to comply from 1 January 2018.  The final Regulations contain differences to the draft issued for public consultation: businesses should take care to analyze the details of this final version. We will provide more detail on the specifics of the Regulations in due course.

One of the initial steps for businesses is to confirm if they are required to register for VAT, and to ensure that they take the necessary steps to register as per the below guidelines:

  • If you are a large company already registered for other forms of taxes in Saudi Arabia, you might be auto-registered for VAT by GAZT. If this is the case, you will receive a notification from GAZT but you will need to log-in to check if the information is complete and valid.  You may also wish to apply to register as part of a VAT group.
  • If you have not received a notification from GAZT that you have been registered, then you can register online starting 28 August 2017, providing you are eligible to register.  As part of your application, you will be requested to indicate the following information:

    • Whether you are an importer, an exporter, or both
    • Bank account details (for payment of refunds) – this is not required if already logged with GAZT
    • VAT eligibility start date, if different from January 1
    • Annual values of VAT taxable supplies and purchases (expected over the first 12 months)
    • For non-Saudi resident businesses, details of your Financial Representative details in the KSA.

 

You can access the final KSA VAT Implementing Regulations on this link.

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