Find out how to submit the tax return form for the Saudi Value Added Tax 2020 in detail. The tax return is that official document that includes the tax liability and payment details of the facility during a specified period of time, which is submitted through the Internet by the taxpayer according to the form prepared by the General Authority for Zakat. and income in Saudi Arabia.

Tax fees are paid by bank transfers to the account of the Zakat and Income Authority in the Kingdom, through the use of the payment system, so all taxpayers in the Kingdom of Saudi Arabia need a “VAT return form”.

Value Added Tax is one of the taxes applied in the Kingdom of Saudi Arabia, starting in 2022, whereby 5% is imposed on all purchases and sales subject to that tax.

The seller registered in the value-added tax at the General Authority of Zakat and Income in the Kingdom is obligated to collect the value of the taxes due and re-supply them to the Authority after deducting the value of the taxes paid by the taxpayer.

To find out more details about the VAT return form in the Kingdom of Saudi Arabia, follow us in the following lines of the information store website.

VAT return form in Saudi Arabia

The VAT return form is a training schedule on how to enter value added tax, to be submitted to the General Authority for Income and Zakat in the Kingdom.

Where the added tax return is submitted on a monthly basis every one or three months, it is usual to open the tax return for a period of only one month so that the declaration data can be filled out and paid through one of the payment methods approved by the Zakat Authority.

The VAT return form consists of three sections as follows:

First: The Sales Tax Paid Section “Output Tax”

During this section, a report is prepared that includes the company’s sales and is charged with the percentage of the taxes due, while calculating the tax-exempt sales.

Second: Department of Tax Collected on Purchases “Input Tax”

During this section, reports are prepared for purchase invoices on which value-added tax is paid, with the obligation to mention the supplier’s details, the tax number, and the purchasing company’s details (name and tax number).

Third: Department of net value added tax due

This section is the appropriate place for calculating the value of the additional value added tax due for the payment of tax fees automatically.

Saudi Arabia VAT Tax Return Form Pdf

You can download the VAT declaration form in PDF format so that through this form you can view the tax declaration schedule for training on how to fill it out and submit it to the General Authority of Zakat and Income, through this direct link (VAT declaration form in PDF format)

Saudi Arabia Value Added Tax Return Form Excel

You can view the VAT_Value_Added_Tax_in_Saudi Arabia-1 form, as this form is the best way to calculate the value added tax related to the sales of the establishment, or what is known as the output tax, to be deducted from the input tax or the purchase tax, and the final product is clarified from the process of subtracting the value added tax to be paid to the Zakat Authority , or the final value owed to the company.

Value Added Tax in the Kingdom of Saudi Arabia

Value Added Tax in the Kingdom of Saudi Arabia is one of the indirect taxes that are imposed on the supply and import of services and goods at every stage of production and distribution, with some exceptions to this.

This tax is applied in more than 160 countries around the world, noting that it is a tax prepared on consumption as it is collected at every stage of the supply chain, so that the consumer pays the value of the value-added tax on the services and goods he purchases, while the establishments pay The value of the value-added tax collected from consumer purchases to the government, with establishments recovering the value of the tax previously paid to suppliers.

With a clarification that the General Authority for Income and Zakat in the Kingdom of Saudi Arabia is the government agency entrusted with the responsibility of managing and implementing value-added tax, in cooperation with all concerned parties, so that the services and goods subject to value-added tax are as follows:

  • Food.
  • Real estate.
  • Oil and petroleum derivatives sector.
  • health care sector.
  • Transport sector.
  • Education sector.

How to submit a VAT return in Saudi Arabia?

Taxpayers can submit a tax return form by taking into account the following points:

Taxpayers are allowed to obtain a VAT return form through the Internet. The electronic tax return form is available in the taxpayer’s account starting from the first day of each tax return submission period.

There is one month for taxpayers to file their tax return.

In the event that the specified period for entitlement expires, the taxpayer will have to pay a fine for the delay in submitting the tax return or the payment of financial dues after the end of the period specified for submitting the tax return.

The VAT return contains three parts as follows:

The first step in filing a value-added tax

We will start by explaining the first part, which is the sales part (outputs), in which there are three columns that the taxpayer must fill in the data in as follows:

  • The taxpayer’s sales of services and goods subject to the application of VAT at 5% (internal sales in the Kingdom of Saudi Arabia) are set.
  • The sales of the taxpayer are placed for citizens in the sectors (population, health, education) from the collection of services and goods subject to the application of value-added tax at a rate of 0%.
  • The sales of the taxpayer within the Kingdom of Saudi Arabia are made of services and goods subject to the application of value-added tax at the rate of 0% (zero tax).
  • The taxpayer’s exports of services and goods are subject to the application of value-added tax at 0%.
  • The taxpayer’s own sales (both inside and outside the Kingdom of Saudi Arabia) of services and goods that are exempt from the application of VAT are placed.
  • Then the taxpayer calculates all the financial amounts set in the previous lines.

The second step of the VAT declaration

The second part is concerned with inputs or purchases, and it also consists of three columns that must be filled out by the order holder in the institution, as follows:

  • The taxpayer’s purchases within the Kingdom of Saudi Arabia of services and goods subject to the application of value-added tax at 5% (internal purchases in the Kingdom of Saudi Arabia).
  • The purchases of the taxpayer outside the Kingdom of Saudi Arabia are made of services and goods subject to the application of value-added tax at the rate of 5%, which the taxpayer has previously paid at the Saudi Customs Authority.
  • The purchases of the facility from outside the Kingdom of Saudi Arabia of the services and goods that you have calculated are placed as an alternative to the non-resident supplier in the Kingdom, and this is what is known as “reverse charge”.
  • The purchases of the facility within the Kingdom of Saudi Arabia of services and goods are subject to the application of value-added tax at the rate of 0%.
  • The taxpayer’s purchases (whether inside or outside the Kingdom of Saudi Arabia) of services and goods that are exempt from the application of VAT are placed.
  • Then the taxpayer calculates all the financial amounts set in the previous lines.
  • Going to the second column and making any adjustments to the previous amounts that were placed in the previous returns.
  • These modifications result from the presence of a part of the goods that has been returned or the presence of debts that have been erased.

The third step of the VAT declaration

  • The taxpayer does not do anything during the third step of the VAT declaration, as the electronic system of the Zakat and Income Authority calculates it automatically.
  • The taxpayer shall amend or correct any error contained in the previous tax returns forms during the last five years, provided that the financial value does not exceed 5,000 Saudi riyals, with an increase or decrease.
  • The remaining balance of previous tax returns are amounts of money that the taxpayer did not recover during previous periods.
  • In the end, the final financial value due for the period for which the tax return is submitted is calculated, whether by adding or subtracting the values ​​in the third column, according to the following equation (subtracting or adding the value of line 14 from the value of line 13, then subtracting the value of line 15 from the same output.
  • By doing so, you have completed filling out the data for the value-added tax return for the previous tax period, and all you have to do is submit your return and pay the specified amount of tax through a bank transfer to the bank account of the General Authority for Zakat and Income in the Kingdom of Saudi Arabia.

Goods and products exempt from value added tax in Saudi Arabia 1442 AH

The Kingdom of Saudi Arabia has identified a list of goods that are exempt from VAT, as follows:

  • Platinum, gold, silver, resource for investment purposes.
  • Medical equipment and medicines specified by the Saudi Ministry of Health.
  • Supplying qualified means of transportation, and various other associated services.
  • Exports from outside the GCC countries.
  • Services imported by non-residents of the Kingdom from the Gulf Cooperation Council countries.
  • Passport issuance services.
  • Services related to the international transportation of all services and goods.
  • Driving licenses issuance and renewal services.
  • Deposit accounts, savings accounts, current accounts.
  • Rental and sale of residential real estate.

Extension of deadlines for VAT return payment

Business owners “establishments” can pay the added tax amounts through bank transfers to the bank account of the General Authority for Zakat and Income in the Kingdom of Saudi Arabia, which is designated by the payment system, knowing that in the event that the facility does not pay the VAT payments on the due date , the facility can be allowed to request an extension of the payment date to the Saudi General Authority of Zakat and Tax, bearing in mind that the request must contain the following data:

  • The amount of money due for value added tax.
  • The period related to the tax period related to the tax liability.
  • Reasons for requesting an extension of the final VAT payment deadline.

After the extension request, the General Authority for Zakat and Tax will respond by approving or rejecting the extension within a period of twenty days from the date of submitting the request.

Timeline for filing a VAT return

The tax period for VAT can be either monthly or quarterly according to the annual sales volume of the facility. The taxpayers are divided into two groups as follows:

  1. First: establishments whose annual taxable sales amount to more than 40 million Saudi riyals, and here the tax returns of the establishment must be submitted on a monthly basis.
  2. Second: establishments whose annual taxable sales amount to less than 40 million Saudi riyals, and here the tax returns of the establishment must be submitted on a quarterly basis, i.e. every three months.

Establishments must submit a value-added tax return for each tax period within the first day and the last day of the following month, at the end of each tax period as follows:

  • To submit the quarterly tax period return between January to March 2020, here the facility must submit the file before the 30th day of April 2020.
  • To file a VAT return for January 2020 hair, you must file before February 28.
  • Knowing that the Gregorian calendar, not the Hijri calendar, is used in accordance with the Unity Agreement for all the countries of the Gulf Cooperation Council.

Steps to submit VAT declaration step

The VAT return can be submitted to the General Authority of Zakat and Income in the Kingdom of Saudi Arabia electronically by following the following steps:

  • Entering the official website of the General Authority of Zakat and Tax on the Internet, through the electronic portal of the Authority for Zakat and Tax.
  • From the portal’s home page, click on the (Indirect Taxes) tab.
  • From there, click on the icon (tax returns).
  • Including clicking on the option (Value Added Tax Declaration).
  • For the taxpayer to search for all the ready-to-fill declarations, enter the data and fill them out according to the required data, and then submit them.
  • Through the notification receipt system, a notification will be sent to you informing you that you have successfully submitted your VAT return.

To be, we have shown you in detail the tax declaration form for the Saudi value added tax and everything related to value added tax in the Kingdom of Saudi Arabia, and the method of registration with the General Authority for Zakat and Income in the Kingdom of Saudi Arabia, and for more services follow us on the information store website.