GAZT calls on companies to file their tax returns before end of October

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Riyadh, October 25, 2018:

The General Authority for Zakat and Tax (GAZT) called on all businesses registered in VAT whose annual revenues from taxable goods and services exceed SAR 40 million to file their tax returns for the month of September before Oct 31, 2018 through the GAZT online portal (gazt.gov.sa). The same deadline applies to businesses with annual revenues from taxable goods and services less than SAR 40 million for their tax returns for the third quarter of the year.


In its statement, GAZT noted that as per the VAT law and its implementing regulations, businesses with annual revenues of SAR 40 million or less are required to file their tax returns for the period from July to September before the end of October. Businesses whose revenue from taxable goods and services exceeds SAR 40 million are required to do so on a monthly basis, which means they must also file their tax returns for the month of September before the end of October.


GAZT asserted that the penalty for failure to file the tax return on time ranges between no less than 5% and no more than 25% of the tax amount due. Moreover, delinquent businesses will be penalized 5% of the tax amount due for each month or part in which the tax goes unpaid. Failure to submit tax returns on time may also result in the suspension of several government services.


On a related note, GAZT affirmed that the provisions of the VAT law and its implementing regulations entitle businesses to amend the tax returns filed for a previous tax period, provided that GAZT is notified within a maximum period of 20 days from the date the error was discovered, and urged businesses to ensure that the information provided on tax due on revenues and purchases in the tax return form to be as clear as possible.


In case of any errors in their annual financial statements, businesses are also entitled to change the tax period from monthly to quarterly and vice versa by logging into their GAZT portal accounts.