Value Added Tax

Value Added Tax is of significant importance for Saudi Arabia, as a major income source for and also as a due diligence measure for corporate. The General Authority of Zakat and Tax (“the Authority”) of the Kingdom of Saudi Arabia published the Value Added Tax draft law (“the Law”) for public consultation on the 29th of May 2017. The draft law outlines all key areas to be implemented within the Saudi Arabian VAT system. Complying with these regulations is important for conducting free and fair business. Every business must adhere to these measures and ensure uniformity and clarity in all business operations. Non-compliance will lead to Penalties, which will range from 2% up to 200% of the net VAT payable. Entities who fail to register for VAT will be fined SR 10,000.

Hanz assists businesses in registering for VAT and obtaining a VAT identification number along with ensuring that every client of ours is supported promptly with the calculation, and reporting of VAT on the goods and services they deal in. Our services also extend to claiming VAT refunds and provide with right guidance on VAT implications and importance.