In general, individuals or entities engaged in continuous and regular economic activities must register for Value Added Tax (VAT) purposes. Registration is optional if their taxable supplies or expenses exceed SAR 187,500 during a twelve-month period, and mandatory if the total taxable supplies exceed SAR 375,000 during the same period. They are also required to collect VAT on their activities and remit it to the General Authority of Zakat and Tax (GAZT).
When Should Taxpayers Submit Their Tax Returns?
Monthly tax returns must be filed by VAT-registered persons whose annual supplies exceed SAR 40 million, due on the last day of the month following the end of the economic activity.
Quarterly tax returns are filed by VAT-registered persons whose annual supplies are less than SAR 40 million, with the first quarter due on April 30.
What Are the Penalties for Late Filing or Payment?
Failure to submit tax returns on time incurs a penalty of 5% to 25% of the tax due.
Failure to pay the tax on time incurs a penalty of 5% of the tax due for each month or part thereof.
After filing the tax return, the taxpayer receives three correspondences via email or mobile number:

  1. Acknowledgment of Tax Return Receipt.
  2. Received Tax Return Form.
  3. Invoice Notice for Payment.

Furthermore, FAI offers you the ability to prepare your tax return and archive it in the system, allowing you to efficiently manage your tax obligations!