By Innovation-sa on January 30, 2018 in News

The General Authority of Zakat and Tax (GAZT) urged Value Added Tax (VAT) registered establishments with more than SR40 million turnover annually to file their tax returns on a monthly basis, while those with an annual turnover equal to or less than SR40 million should file tax returns every three months.

Enterprises whose supplies of goods and services total SR40 million annually must file tax returns for January before the end of February while those whose supplies of goods and services total SR40 million or less are required to file their first tax return before the end of April.

A fine of 5 to 25 percent of the tax amount will be imposed on businesses and enterprises that fail to file tax returns on time, in addition to suspension of several government services.

The tax return form specified by GAZT has two separate sections; the former is for the tax due on revenues (output tax) whiles the latter is for the tax due on purchases (input tax) and businesses must conform to this form.

Enterprises will automatically be issued tax invoices which specify the invoice number and the tax amount that is due. Once issued, enterprises must pay the tax amount to GAZT’s bank account through SADAD online payment portal or ATM.