No VAT on exports: Saudi tax authority

0

Author: MOHAMMED AL-SULAMIFri, 2018-01-26 03:00ID: 1516910822152211000

JEDDAH: The General Authority of Zakat and Tax (GAZT) clarified that Saudi Arabian exports are zero-rated under the VAT Law and Implementing Regulations.
This means that in-Kingdom enterprises exporting goods and services can deduct the VAT-eligible input taxes they paid, as long as they file their tax returns as required.
GAZT stressed that the provision of zero-rating exports is one of many incentives given under the VAT to enterprises exporting goods and services.
In order to apply the zero rating, the supplier of goods and services must retain evidence that they have been transported from the Gulf Cooperation Council (GCC) region, within 90 days after supply, as stipulated in Article 32 of the regulations.
All intra-GCC supplies will be zero-rated as an interim measure until VAT is officially implemented in the remaining member nations and electronic VAT system is established across the GCC.
All exporting enterprises must retain the relevant documents, including those issued by Saudi Customs, which prove that the supplies have been formally cleared for export on behalf of the supplier or customer for each supply, commercial documents with the customer’s details and place of delivery, as well as transport documents for the delivery or receipt of the supplies outside the GCC region.
GAZT may reject the documents if they fail to provide sufficient evidence that the supply was transported outside the GCC region, and the standard 5 percent VAT rate will apply.
GAZT also reminded all VAT registered enterprises with annual supplies exceeding SR40 million ($10.7 million) to file monthly tax returns, as stipulated by the VAT Law and Implementing Regulations.

Main category: Saudi ArabiaTags: VATSaudi value-added tax (VAT)General Authority of Zakat and Tax (GAZT)Gulf Cooperation Councilrelated_nodes: GAA offers special post-VAT scheme to its customersNo VAT on loans, ATM services, says Saudi tax authoritySaudi tax policy likely to influence Gulf partners

[contf] [contfnew]

Arab News

[contfnewc] [contfnewc]

Leave A Reply

Your email address will not be published.