Business & Money | Sunday 19 November, 2017 4:39 am |

The General Authority for Zakat and Tax (GAZT) will sign a cooperation agreement with the Ministry of Municipal and Rural Affairs to facilitate the compliance of businesses on Valued Added Tax (VAT), following similar agreements with the Ministry of Labor and Social Development and Saudi Customs.

 

The agreement is part of GAZT’s wider efforts to encourage businesses to register for VAT ahead of the registration deadline on 20th December 2017, and to promote coordination between government agencies to ensure the compliance of businesses with tax requirements.

 

"Through these agreements, GAZT seeks to encourage businesses to register and achieve readiness ahead of the launch of VAT. We are making every effort to reach out to businesses and provide them with the support and services they need to understand VAT" said the Governor of GAZT, HE Suhail Abanmi.

 

"Businesses have a lot to do to prepare for VAT, and GAZT is doing everything in its power to help businesses and raise their readiness" he commented, adding that businesses whose annual revenues exceed SAR 1,000,000 must register through the VAT.GOV.SA before 20th December 2017.

 

Hamad Al-Omar, spokesman for the Ministry of Municipal and Rural Affairs, praised the efforts made by GAZT to ensure the implementation of VAT, acknowledging the steps taken by the Authority to support the business sector. He said: "We are pleased to be working alongside GAZT to support the smooth implementation of VAT, in line with the nation’s interest."

 

Under the Unified VAT Agreement for the Cooperation Council for the Arab States of the Gulf, all businesses with annual revenues of over SAR 375,000 are required to register for VAT. Businesses with annual revenues between SAR 187,500 and SAR 375,000 are eligible to reclaim VAT on their inputs if they register, while businesses with annual revenues below SAR 187,500 are exempt from registration.

 

The official VAT website, VAT.GOV.SA, features a wide range of tools and resources to support businesses in their preparations for VAT, including video guides, and information on all aspects of the registration and readiness process, as well as a comprehensive list of the goods and services subject to VAT.