GAZT urges companies with annual revenues less than SAR 40 million to file their tax returns

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Riyadh 8 April 2018:
The General Authority for Zakat and Tax (GAZT) called on all businesses registered in VAT whose annual supply of taxable goods and services amounts to SAR 40 million or less to file their tax returns for the first quarter of the year before the end of April 2018.


GAZT further noted that businesses whose annual supply of taxable goods and services ranges from SAR 375,000 to SAR 1 million and have registered voluntarily in VAT are similarly required to file their tax returns every three months.


In accordance with the VAT implementing regulations, businesses whose annual supply equals SAR 40 million or less must submit their tax returns every 3 months, while businesses whose annual supply exceeds SAR 40 million must do so monthly on the last day of the month following the end of the relevant tax period.


The penalty for failing to file tax returns on time, clarified GAZT, equals no less than 5% and no more than 25% of the value of the tax that the business was required to declare. GAZT will also levy a penalty against delinquent companies which equals 5% of tax amount for each full month or part thereof past the deadline. Non-compliant businesses will also be subject to the suspension of many government services.


After the company files its tax return, a "SADAD" bill containing the invoice number and the amount of the tax due will be automatically issued which can then be paid directly through the SADAD system.


GAZT also noted that companies are entitled by the VAT implementing regulations to rectify tax returns previously submitted, provided that GAZT is duly informed within no more than 20 days from when the tax return was filed. 


In the event of the discovery of an error in their annual financial statements, businesses have the option of filing their tax returns on a quarterly basis instead of monthly basis and vice versa through the business’ account in GAZT online portal.


On a related note, GAZT had recently announced that 95% of the companies whose revenues exceed SAR 40 million have filed their tax returns on time.