The General Authority of Zakat and Tax (GAZT) in Saudi Arabia have approved the VAT Implementing Regulation, as its introduction approaches starting from January 1, 2018.
The GAZT meeting summarised that the regulations build on the GCC Unified VAT Agreement and Saudi VAT Law and govern all aspects of the VAT implementation in Saudi Arabia.
The regulations are comprised of 79 articles and divided into 12 chapters. It explains the tax requirements on certain goods and services, the registration rules, eligibility of tax for businesses, zero-rated and exempted products, the rules for imports and exports, and other areas.
The regulations have been published on Umm Al-Qura on September 22, following the public consultation. They are available on the dedicated VAT website, VAT.GOV.SA, launched by GAZT last month.
The website contains resources to help businesses with the full registration and readiness process of VAT. It includes video tutorials, guidelines and information pack resources to help businesses prepare.
The governor of GAZT, Suhail Abanmi, stated that businesses have a lot to do to prepare for the introduction of VAT.
“Ensuring businesses understand the implications of VAT – and the steps needed to prepare – is a priority for us. I urge all businesses to look closely at the regulations and their preparations for VAT, and the resources we have developed,” he added.