Other BriefingsSaudi Arabia Directs Enterprises to Submit VAT Returns for March and Q1 2024
The Zakat, Tax, and Customs Authority (ZATCA) have issued a notice to all businesses liable for value-added tax (VAT) and with annual supplies surpassing SAR40 million (US$10.66 million), reminding them to submit their VAT returns for March.
Moreover, businesses with annual supplies below SAR40 million are reminded to file their VAT returns for the first quarter of 2024 by April 30.
To avoid potential fines ranging from 5 percent to 25 percent of the prescribed VAT, businesses are instructed to visit the Authority’s website (zatca.gov.sa) or utilize the Authority’s smartphone application (ZATCA).
Last year, ZATCA urged all taxpayers subject to Saudi Tax Laws to take advantage of the “Cancellation of Fines and Exemption of Penalties Initiative” that ended December 31, 2023. The exempted penalties included fines for late registration in all tax laws, late payment, late filing of returns fines in all tax laws, and fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other VAT general regulations.
Making VAT payments and filing VAT returns in Saudi Arabia
Every business possessing a Saudi VAT number is required to regularly submit VAT returns and payments. Access to online VAT return forms is granted through the taxpayer’s account at the start of each filing period. The responsibility for filing VAT returns lies with the taxable individual or their authorized representative.
The filing frequency varies based on the taxpayer’s annual taxable supply value. Those with an annual turnover exceeding SAR 40 million must file their tax returns monthly, while those below this threshold should do so quarterly. However, taxpayers have the option to choose monthly filing regardless of their turnover.
| VAT Compliance Schedule and Filing Mechanism | |
| VAT return name | VAT return form |
| Filing requirement | Monthly or quarterly (depending on turnover) |
| Online mechanism | VAT returns to be filed electronically at GAZT portal |
| Annual return | Not required |
| Deadline for filing | The last day of the month following the conclusion of the relevant tax period. Even if the last day of the month falls on a non-working day, taxpayers are still required to submit their VAT returns and settle any dues by that date. |
| Deadline for payment | Same as the filing deadline |
| Currency of payment | Saudi riyal (SAR) |
| Penalty Levied for VAT Misdeclaration or Late Filing | |
| Penalty description | Penalty amount |
| Incorrect tax return filing resulting in tax shortage | 50% of the difference between calculated VAT and VAT due |
| Failure to submit VAT return by the due date | Not less than 5% but not exceeding 25% of the VAT value that should have been declared |
| Late payment of VAT | 5% of the unpaid VAT value |
| Tax evasion | Penalty equals VAT due or up to three times the value of goods/services subject to evasion |
| Failure to apply for VAT registration | SAR 10,000 |
| Violation of archiving rules | SAR 50,000 |
| Moving goods in/out of Kingdom without paying VAT due | At least VAT due and up to three times the value of the goods |
| Issuing VAT invoice by non-registered person collecting VAT | Up to SAR 100,000 |
| Obstructing tax officers from duties | Maximum penalty of SAR 50,000 |
| Violation of other VAT regulations or law | Maximum penalty of SAR 50,000 |
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