Riyadh – Mubasher: Saudi businesses whose revenues ranged between SAR 375,000 and SAR 1 million are required to register for value-added tax (VAT) by 20 December 2018, said the Saudi General Authority OF Zakat and Tax (GAZT).
VAT registration is optional for firms with revenues ranged between SAR 187,500 and SAR 375,000, the Saudi Press Agency (SPA) on Thursday reported, citing the GAZT as saying.
On the other hand, the companies whose revenues are less than SAR 187,500 will not register.
Businesses that their revenues exceed SAR 1 million must register before 20 December 2017 to avoid any sanctions, the GAZT added.
Firms which will not register in VAT ahead of the deadline will pay SAR 10,000 as a fine and penalties will be applied if their tax return will not be submitted within the deadline.
Sanctions for not paying the tax during the deadline is equivalent to 5% of the unpaid tax’s value, while firms which have not submitted the tax return within the deadline will pay not less than 5% and not more than 25% of the tax amount.
The company that will issue tax document and not register in the VAT will pay maximum SAR 100,000 as a fine.
Saudi Arabia will apply the VAT by the beginning of 2018.
