Value Added Tax (VAT) in Gulf countries
The General Authority for Zakat and Income in the Kingdom of Saudi Arabia announced that the application of the Value Added Tax (VAT) will be effective from 1 January 2018 after the entry into force of the unified value added tax agreement between the GCC countries on 23 May 2017.
The General Authority for Zakat will be responsible for managing the application of value added tax in the Kingdom of Saudi Arabia.
Therefore, all companies and taxpayers whose sales or annual revenues exceed 375 thousand Saudi Riyals will be required to register. Registration procedures will start as announced by the Authority as of 1/9/2017 and there will be procedures and requirements for registration.
At the beginning of 2018, there will be a real start to the application of VAT, with a tax of 5%. This requires a change to the accounting system and invoices.
There will also be periodic requirements from the beginning of 2018 that a tax return shall be submitted for each period to be determined by the Commission not to exceed 3 months.
Therefore, the issue of reviewing the tax authority and registration and preparing for the issuance of tax invoices and the submission of declarations calls for the presence of an expert and specialized in the field of VAT.
The company, through its tax partner and its staff, is ready to provide all tax services related to procedures, consultations and training courses to qualify the company's employees to deal with VAT. The tax partner, Dr. Omar Bani Arshid, has over 22 years of practical experience. Workshops, educational and training courses on VAT in most of the Gulf countries.