Saudi authorities have clarified that 20 December is the deadline for mandatory VAT registration.
At the end of July, the Saudi authorities released a notification, saying there’d be a 30 day deadline, which many newspapers interpreted as 30 days from the release of the notification.
This was a shock to many businesses, as the VAT portal was not expected to be live by the anticipated date, 26 August.
The online registration portal will open on 28 August.
Shiraz Khan, team leader at Al Tamimi and Co law firm, noted that there was no way of registering online, and that it was not possible for all taxpayers to register within the timeframe.
Additionally, public consultation on the draft law doesn’t end until 19 August.
Hence, the government’s VAT website has officially announced that all business, companies or entities that make over SAR375,000 in taxable goods and services are legally required to register for VAT by 20 December 2017.
The General Authority of Zakat and Tax (GAZT) have announced that all taxable parties that acquire more than SAR375,000, but less than SAR1,000,000, will be exempt from the requirement to register until 20 December 2018.
Those that are in excess of SAR187,500 are able to register voluntarily.
“Voluntary Registration provides significant benefits for the companies since it allows the deduction of input tax,” the website said.
Saudi Arabia will implement VAT on 1 January 2018.