If you are a taxpayer subject to value-added tax (VAT), you must know what obligations and conditions you are required to comply with. Here are the most important obligations stipulated in the regulations:

    1. Issuing Invoices:
      • Every person subject to VAT must issue a tax invoice, whether it’s a simplified invoice or a full invoice, for every taxable supply to both taxable and non-taxable persons. Invoices must be issued according to the requirements set by the authority. (Article 53)
    2. Submitting VAT Returns:
      • Every registered person for VAT purposes, and anyone representing a VAT taxpayer, must submit their tax return for supplies and expenses during the tax period, whether monthly or quarterly (every three months).
      • The tax return is a self-assessment by the person for their supplies and expenses, determining the amount they owe or are owed by the authority, and refund requests can be made within five years.
      • The return must be submitted and the tax paid by the last day of the month following the end of the tax period. (Article 62)
    3. Maintaining Records:
      • All persons subject to VAT must keep tax records related to calculating VAT for auditing purposes and for inspection and review by authority employees if necessary. This includes any documents used to determine the VAT amount for each tax return.
      • Records must be kept for the basic retention period of six years. (Article 66)
    4. Displaying VAT Registration Certificate:
      • A person subject to VAT and registered with the authority in the VAT system must display their registration certificate at their main place of business and all branches where it is visible to the public. (Article 8-8)
    5. Correcting Previous Errors:
      • If a taxpayer discovers an error in their tax return, the incorrectness of the amount stated in the return, or a failure to comply with any tax obligation, they must inform the authority and correct the error by amending the tax return.
      • If the error results in a tax difference of more than SAR 15,000, the taxpayer must inform the authority within 20 days of discovering the error and amend the previous return.
      • If it’s less than SAR 15,000, the error can be corrected by adjusting the net tax in the previous return. (Article 63)