VAT Offences and Penalties in KSA

Non-payment of VAT or non-filing of VAT return attracts multiple penalties in the Kingdom of Saudi Arabia. The following list enumerates it. S.No Nature of offence Penalty 1 Where a business submits false documents to evade the payment of the tax due or to reduce its value The Penalty might range between More than the

read more

Overview All suppliers who are registered for VAT in KSA must produce invoices showing details of revenue and tax information on all taxable sales. When should a VAT invoice be issued? VAT invoice must be issued by the 15th day of the succeeding month of the transaction. Information required in a VAT invoice issued in

read more
Reverse Charge Mechanism in KSA VAT

Overview Where input VAT which has not been paid before that period’s tax filing, the taxpayers must still account for it. This concept is known as reverse charge mechanism (RCM). Under this, the taxpayer effectively uses the reverse charge as a payable amount on its tax return to account for an input tax amount that

read more
Deductions under VAT in KSA

One of the major highlights of VAT is that, it tries to eliminate the cascading effect of taxes i.e the tax on tax. The significance of this is that the effect of tax is felt only on the value of goods or service provided and not on any other tax. VAT tries to eliminate this

read more
Place of Supply under VAT in KSA

VAT is an indirect tax on consumption that is paid and collected at every stage of the supply chain. Hence the place where the goods/services are consumed is of utmost importance to determine changeability of VAT. How to determine the place of supply The place of supply is the place where tax is ultimately levied.

read more
Classification under VAT in KSA accounting firm in UAE

Goods and Services that come under VAT can be classified into three categories: Taxable Supplies – Those goods and service which are subjected to tax Exempt Supplies – Those goods and service which are not subjected to tax. Nil-rated supplies – Those goods and service which are subjected to 0% tax. Significance of Taxable supplies: All those goods and

read more


Binary Tower, Marasi Drive,
Business Bay,
Dubai, UAE
Phone KSA: +966 58 264 5319
UAE: +971 567952590

Skip to toolbar