Saudi VAT for Export of Services Outside GCC

It is important for such businesses to know about the immense benefits that come with being a VAT registered dealer.

A person should make VAT payment after submitting the VAT return for the tax period. Payment of tax should be done maximum by the last day of the month following the end of the tax period.

The concept of time of supply is very crucial for businesses to know the period in which the output VAT needs to be paid to the Government.

When goods are imported by persons residing in KSA, the recipients are liable to pay tax on reverse charge to the GAZT (General Authority of Zakat & Tax).

A VAT invoice is a document to be issued by persons registered under VAT in KSA, evidencing that a taxable supply of goods or services has taken place.

Input VAT deduction means the provision to deduct the value of VAT paid on inward supplies from the value of VAT payable on outward supplies.

A person registered under VAT is required to pay tax relating to a tax period by the last day of the month following the end of the tax period.

Export of goods from Saudi Arabia to a place outside the GCC territory will be zero rated. This means that no tax will be applicable on such supplies.

The provision of input tax deduction to persons registered under VAT ensures that a product or service is taxed only on the value added to it and hence, avoids double taxation in the supply chain.