Kingdom of Saudi Arabia or KSA is an Arabic Islamic country which happens to be the largest country in the gulf. It is strategically located close to Europe, Africa and Asia. Riyadh is the capital of KSA. Two of the holiest places for Islamic people lie in Saudi Arabia. Muslims from all over come in hordes to do Hajj at Makkah and Madinah. Saudi Arabia is the first country in the world in oil production.
Emergency measures because of COVID-19 threat
The government of Saudi Arabia has announced some emergency steps to help the taxpayers to defer their tax payments including submission of VAT return filing because of the worldwide threat of Corona Virus which seems to have paralyzed the economy of the world. This step has been taken to help the business people manage their liquidity and cash flow in the coming few months. These extraordinary measures were compulsively taken as a result of COVID 19, an acronym for this deadly virus which is causing wide scale damage on its wake.
Extension of the Due Date of Submission of VAT Return
The new date is an extension from the due date previously fixed. The primary due date for filing of VAT returns was 31st March 2020. It has been extended to a new date of 31st July 2020. There has been another decision taken in this direction to bring relief to people engaged in businesses, trade and commerce. The fines that would have accrued for delayed submission of VAT returns and payments of taxes have been exempted. However, the fines that were imposed before the date of this initiative will remain in force, and it won’t be deferred. The fines imposed during the period in which the initiatives were taken will be delayed until the June end.
There is GAZT or General Authority of Zakat and Tax in Saudi Arabia which has decided to allow taxpayers to pay by installment. There won’t be any requirement of down-payment. Apart from this measure, the VAT refund process will be made quicker if the taxpayer requests for the same.
New facilities and flexibilities such as VAT payments made by registered taxpayers to the Customs Department on imports linked to the business activity. The suspension of the following has been part of the initiative by the government of KSA:
The implementation of ceasing of services and seizing funds are suspended. There won’t be fine for late payments of installments. Also, the fine for the misdemeanors of non-cooperation has been suspended. These emergency measures have been widely welcomed by the taxpayers. KSA has taken steps in line with G20 country government initiatives to help the private sector.
Many countries of the world are taking extreme steps to initiate emergency measures in the direction of tax breaks to support the faltering economy caused by the threat of COVID-19. Pakistan has extended the date of tax payment. It was on 28 March 2020. Lithuania has written off taxes up to one year. New Zealand has extended help towards businesses in Goods and Service Tax. Finland has extended VAT payment for 3 months. Hungary has delayed its invoice reporting until 1st July 2020. Canada also has extended some relief, though not as substantial as other countries have.
GCC Filings is a professional body providing accountancy solutions to the industries and businesses. It also can assist business houses in registering and filing of VAT returns. It is also known as Tax and Accountancy consultants.