Value Added Tax (VAT) Filing in KSA

Value Added Tax (VAT) in the Kingdom of Saudi Arabia is an indirect tax applied to the sale of goods and services. It was introduced on January 1, 2018 and is regulated by the Zakat, Tax and Customs Authority (ZATCA). The standard VAT rate is currently 15%. Businesses registered for VAT must charge VAT on taxable supplies, collect it from customers, and periodically file VAT returns with ZATCA. They can also claim input VAT on eligible business expenses. VAT applies to most goods and services, though some categories may be zero-rated or exempt.

Required Documents for VAT Filing

To ensure accurate and timely VAT filing through the ZATCA portal, the following documents must be provided:

Bank Statements – For the last three (3) months

Supplier Invoices – All invoices paid to suppliers in the past three (3) months, as well as invoices issued or dated within the same period.

Sales Records – Detailed sales data for the past three (3) months

RCM Reports – Reverse Charge Mechanism (RCM) reports downloaded from the FASAH portal

Ongoing Communication – Coordination with the client is essential to review and submit the VAT return on the ZATCA portal