“Zakat and Income” Saudi Arabia invites establishments with annual revenues of 40 million riyals to submit their tax returns

Media In / Agencies / Riyadh 8 April 2018
The General Authority for Zakat and Income Tax has invited all establishments registered in the value added tax, whose annual imports of taxable goods and services, SR 40 million or less, to submit their tax returns for the first quarter of the year before the end of April 2018.
The Authority pointed out that establishments with an annual supply of SR 375,000 to SR 1 million were optionally registered in the Value Added Tax (VAT) system. They are obliged to submit their tax returns and therefore submit their tax returns every three months.
In accordance with the executive regulations for value added tax, establishments whose supply equals 40 million riyals or less must submit their tax declaration every 3 months. For establishments whose supply exceeds 40 million riyals, they must submit their statements monthly, no later than the last day after the end of the period Tax related to recognition.
The Zakat and Income Tax Authority confirmed that the penalty for not submitting the tax return within the specified period is not less than 5% and not more than 25% of the value of the tax that the establishment was required to recognize, in addition to the late payment of the tax due, which is equivalent to 5% Which are not paid for each month or part of which no tax has been paid. Non-compliant enterprises will also be subject to the suspension of many government services.
The Authority explained that after the entity submits the tax return, a “SADAD” invoice containing the invoice number and the amount of the tax due will be automatically issued and the company can submit it through SADAD.
On the other hand, the General Authority for Zakat and Income (ZAKA) pointed out that the establishments are entitled to correct their tax returns, which they have already submitted for a previous tax period, in accordance with the provisions of the executive regulations of the VAT system, provided that the Authority is informed of this within a period not exceeding twenty days from the date of submission of the declaration.
The Authority explained that the entities can change the period of submission of their tax returns, from monthly statements to quarterly and vice versa, in the event of an error in recording the annual financial statements, through the account of the entity in the portal of the Authority.
The General Authority for Zakat and Income has recently announced the commitment of 95% of enterprises whose revenues exceed 40 million riyals to submit their tax returns on time.