Saudi GAZT says over 55,000 businesses register for VAT

Saudi Arabia’s General Authority for Zakat and Taxes (GAZT) said that over 55,000 establishments have registered for Value-Added Tax (VAT) since registrations opened on August 28, 2017.

The authority has called upon establishments with annual revenue exceeding SAR 1 million to register for VAT before Dec. 20 this year.

Small businesses with annual income of less than SAR 1 million will be given a grace period for VAT registration until Dec. 20, 2018, Saudi Press Agency (SPA) reported.

GAZT last week approved executive regulations for VAT ahead of its introduction in the Kingdom on Jan. 1, 2018.

Under the Unified Agreement on VAT, entities with annual income above SAR 375,000 will be required to register for VAT while registration will be optional for entities with annual income between SAR 187,500 and SAR 375,000 and they will be allowed refund of the taxes.

Entities with annual income less than SAR 187,500 are exempt from VAT, GAZT added.