Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) called on businesses subject to value added tax (VAT) whose annual supplies of goods and services exceed SAR40 million to submit their tax returns for July no later than August 31. ZATCA urged businesses to expedite filing their returns through its website zatca.gov.sa or via the smartphone application (ZATCA) to avoid penalties for late submission, which range from a minimum of 5 percent to a maximum of 25 percent of the VAT due, the Saudi Press Agency (SPA) reported.
ZATCA also encouraged taxpayers from the business sector seeking further information on VAT to contact its call center at the unified number 19993, which operates 24/7, or through its X account @Zatca_Care, email info@zatca.gov.sa, or live chat service on its website. VAT is one of the tax systems currently in effect in the Kingdom of Saudi Arabia. It is an indirect tax imposed on all goods and services bought and sold by businesses, with certain exceptions.
Extension of tax amnesty scheme until December 31, 2025
In addition to the submission deadline, ZATCA has extended its VAT and e-invoicing penalty relief initiative through December 31, 2025. This extension allows eligible taxpayers an additional six months to regularize their compliance status without financial penalties, as long as they file any outstanding VAT returns and settle the principal tax due by the deadline. The relief excludes tax evasion violations and previous penalty payments. This move aims to support businesses during Saudi Arabia’s phased e-invoicing rollout and ensures a smoother transition to full compliance. Businesses can also explore payment installment options approved by ZATCA if required.
ZATCA has continually updated its online portal to streamline the VAT return filing process and facilitate amendments to already submitted returns. The portal supports requests for changing VAT filing periods and adjusting input tax deductions, providing a user-friendly environment for taxpayers.
The Kingdom mandates monthly VAT filings for businesses exceeding SAR40 million in turnover and quarterly filings for smaller entities, with clear deadlines to avoid penalties. Filing VAT returns involves detailed reporting on output VAT collected and input VAT paid, and even those with no taxable activities must submit nil returns.
