VAT Return Filing in KSA: Due Dates, Process and Penalties

The Kingdom of Saudi Arabia (KSA) manages Value Added Tax (VAT) through the Zakat, Tax and Customs Authority (ZATCA), formerly known as GAZT. Every VAT registered business must file VAT returns periodically via the ZATCA portal. Understanding the process, timelines, and requirements for filing VAT returns in Saudi Arabia is crucial.

The article explains how to file VAT returns in Saudi Arabia, including the types of returns, due dates, and how to make amendments. It also covers the information needed for submission, how to change filing periods on the ZATCA portal, and penalties for non-compliance.

What is VAT Return?

In Saudi Arabia, a VAT return is a document that businesses submit to the Zakat, Tax and Customs Authority (ZATCA) to report their VAT obligations. It includes details on VAT collected from sales (output VAT) and VAT paid on business expenses (input VAT). By assessing these figures, businesses determine whether they need to pay VAT to ZATCA or if they are eligible for a refund.

Who has to file VAT returns in KSA?

Every taxable person registered under the KSA VAT law is mandatorily required to file the VAT returns in KSA either every month or every quarter, depending upon the annual turnover.

The requirement to file VAT returns is mandatory, and hence, even if a taxable person does not have any transaction in a tax period, he will have to file a ‘Nil’ return for that period.

Filing Periods and Deadlines for VAT Returns in KSA

In Saudi Arabia, the VAT filing period for businesses can be either monthly or quarterly, depending on their annual turnover.

Turnover more than SAR 40 million: Monthly VAT returns

Businesses with an annual turnover of more than SAR 40 million are compulsorily required to file their VAT returns monthly.

Due Date for filing VAT Returns

The taxpayers must file their monthly VAT returns between the first and the last day of the month following the end of the tax period. For example, taxpayers must file VAT returns for March between 1st April to 30th April. 

Below are the monthly return filing period, along with the due date and deadline to file monthly VAT returns:

Turnover less than SAR 40 million: Quarterly VAT returns 

Businesses with an annual turnover of up to SAR 40 million or less can file their tax returns quarterly. 

Due Date for Filing Quarterly VAT Returns

The taxpayers can file their quarterly VAT returns between the first and the last day of the month following the end of the quarter. For example, taxpayers must file VAT returns for the quarter of October to December between 1st January to 31st January.

Below are the monthly return filing period, along with the due date and deadline to file monthly VAT returns:

VAT return format

The VAT return requires taxpayers to provide information about the VAT collected on sales and paid on purchases. The form has 16 sections to cover all transactions. ZATCA divided the VAT form into two parts. The first part deals with output VAT (VAT on sales), and the second part deals with input VAT (VAT on purchases).

How to e-file VAT returns?

Taxable persons can file VAT returns electronically on the ZATCA portal. The taxpayers must fill out the VAT return form that contains details of the taxpayer, details of the sale of goods or services, amount of the sales, VAT charged, input tax claimed, etc. 

The taxpayer should fill in all details about the sales and purchases, including zero-rated sales/purchases, exports, exempt sales/purchases, and imports. However, the taxpayer can enter nil value if it is not applicable or no transactions are made in that section.

Let’s see how to e-file the VAT return on the portal:

Deadline extension for VAT payment

The taxpayers can request the authority to extend the VAT payment deadline if they are unable to pay VAT liability by the due date. The taxpayers should submit the details such as tax liability, tax period and the reasons for the deadline extension. The ZATCA can either approve or reject the extension request within 20 days.

Amendments to VAT returns

The ZATCA portal allows all taxpayers to amend the VAT return if the need arises to modify the already submitted details. However, to amend the VAT return, the taxpayer must fulfil the following conditions: 

• The taxpayer must present reasons for amendments.
• Relevant documents are required to be attached. 
• The taxpayer should also adjust the financial statements. 

Also, the taxpayer should adjust the tax due (if the difference is less than SAR 5000 due to an error) in the next tax return.

If you have already filed a VAT return, you can amend it using portal services and the steps mentioned below: 

Penalty for Non-Compliance with VAT Return 

How to change the filing period under KSA VAT?

The ZATCA portal also allows you to change the VAT return filing period. The KSA VAT requires all businesses to file monthly VAT returns mandatorily if their turnover is more than or equal to SAR 40 million. 

The portal enables you to submit the request to change the VAT filing period. The authority makes the final decision upon reviewing the application carefully. The maximum period to receive the response from the authority is one day. 

Here are the steps to change the VAT filing period on the ZATCA portal. 

Conclusion

Businesses must file their VAT returns either monthly or quarterly, depending on their annual turnover. It is crucial to submit these returns by the end of the subsequent month following the tax period to avoid penalties.

The ZATCA portal is simplified and user-friendly to enable taxpayers to smoothly e-file, amend, or submit requests related to KSA VAT. The portal provides detailed guidelines and tutorials on how to amend a VAT return, e-file the VAT return, change the input tax deduction method, and change the filing period.