Further to our update published on 2 April 2020 on the tax amnesty measures launched by the General Authority of Zakat and Tax (GAZT) in the Kingdom of Saudi Arabia (KSA), the GAZT has recently announced that the initial amnesty period up to 30 June, will now be extended until 30 September 2020. In particular, there is now a further chance for businesses that may have had a registration obligation to now register for VAT and submit their returns without any additional penalties. Also, businesses that were already registered can make use of the amnesty to make corrections of omissions or errors in previously filed returns.
A summary of tax amnesty scheme is as follows:
Eligibility and timeframe:
Late registration:
Returns and voluntary disclosures:
Limitation:
It is unlikely, in our view, that the above measures will be extended beyond the end of September 2020. Therefore, we strongly suggest that taxpayers review their current and historic VAT position to ensure that their compliance and tax affairs are in order in good time.
If you are already VAT registered, you should carefully consider reviewing your July and August VAT returns to take account of the [new] increase in the VAT rate to 15%. We can provide a thorough VAT return health-check, training and
other services, if so required.