By Innovation-sa on December 24, 2017 in News

The General authority of Zakat and Tax (GAZT) confirmed that more than 80,000 businesses in Saudi Arabia have registered for Value Added Tax (VAT) which will be implemented on January 1, 2018.

Earlier, GAZT called upon companies and businesses operating in the Kingdom with an annual revenue exceeding SR 1 million to register for VAT before December 20, 2017.

GAZT also warned that companies who fail to complete the registration process before the allocated time will be exposed to a fine of SR 10,000, in addition to other penalties related to non-compliance of tax returns and non-payment of tax on time.

However, registration deadline for entities with annual income between SR 375,000 and SR 1,000,000 is December 20, 2018.

Registration of establishments with annual income between SR 187,500 and SR 375,000 are optional, while businesses with annual revenue less than SR 187,500 are exempted from VAT registration.