Regulates the imposition and collection of VAT, registration, and tax return procedures.
Value Added Tax is levied at 15% on taxable supplies within the Kingdom.
Tax returns submitted after the deadline are subject to late filing penalties.
Taxpayers may challenge tax assessment decisions before the Objections Committee.
Tax applies to electronic supplies imported from outside the Kingdom if the final consumer is inside it.
Every person whose taxable revenues exceed one million riyals annually must register with the Authority.
Financial, insurance, and some health and educational services are exempt from VAT.
Tax returns are submitted quarterly unless the Authority requires monthly submission from the taxpayer.
Suppliers must issue a tax invoice including the tax registration number and the tax amount.
Registered persons may reclaim input tax paid on purchases related to their economic activity.
Violations carry fines ranging from 1,000 to 100,000 riyals depending on the type of violation.
Taxpayers must retain tax records and documents for no less than six years.
The Authority has the right to inspect and verify the taxpayer's records during the specified period.