VAT | VAT Returns | VAT Payable

VAT stands for Value Added Tax and it is a tax imposed on the supply of all the goods and services. The term Tax refers to a fee or sum of the amount paid to the government by an Individual or by the business entities. With the help of Tally ERP Software, you can easily manage all the accounts, VAT payable, VAT refundable etc for the taxpayer or business organization. Tally ERP is one of the top sixteen accounting software recognized by General Authority for Zakat and Tax (GAZT).

Moving to a new tax regime is a big task, especially for the region which is being introduced to the VAT for the first time. If you are a startup business or running or an existing one, then Tally.ERP9 is your perfect business managing solution and VAT compliance software. The government collects VAT from the companies on the customer’s purchase and refund VAT paid to the suppliers.

Manal Technology offers you the best Tally accounting software that can handle the VAT structure so that your business is ready for growth in today’s world. We have Technical Experts and Experienced Programmers who can customize the software according to your business need. Tally.ERP9 offers solutions such as Accounting, Finance, Sales, Inventory, Purchase, Branch Management, Point of Sale, and Manufacturing along with VAT compliances in GCC.

Here is some general information about VAT Saudi Arabia (KSA):

VAT Records and Books of Accounts

Timeframe requirements for VAT-related records: VAT taxpayers must maintain relevant records for a minimum of six years after each tax period, in case of an audit.

Companies must keep a record of the adjustment period for six years of tangible and intangible assets and more than a decade of real estate assets – plus five years from the date of purchase. A total sum of 11-15 years.

Where to keep VAT records: Taxpayers are required to maintain their VAT records inside the Kingdom. These records must be KSA internal physical files or electronically stored, where the physical server is also located within the Kingdom. This also applies to non-resident taxpayers whose designated tax representative is responsible for maintaining records according to these principles. Multinational companies are concentrating on records outside the KSA and must have a terminal where they can access VAT records related to KSA.

 

Description of offence	Associated fine
Submit false documents to evade the payment of the VAT due or to reduce its value	• More than the amount of the VAT due • Less than three times the value of the goods or service
Move goods in or out of the Kingdom without paying the VAT due	• More than the amount of the VAT due • Less than three times the value
Do not register for the VAT in the allotted timeframe	• SAR 10,000
Do not file VAT return in time	• 5-25% of the VAT due
Do not pay the VAT in time	• 5% of the VAT due for each month
Gain VAT without registration	• Up to SAR 100,000
Do not maintain books and records as stipulated in the regulations	• Up to SAR 50,000
Prevent the employees of the Authority from performing their duties	• Up to SAR 50,000
Violation of any provision of the VAT regulations or the VAT law	• Up to SAR 50,000