The process of refunding Value-Added Taxes in Saudi Arabia could be complicated at times, but BMS Auditing is here to make it more accessible for you. Knowing how VAT refunds works requires knowledge that would enable both businesses and individuals to claim the refundable VAT whenever possible.
In Saudi Arabia, VAT recoveries can be claimed quarterly, with one annual consolidating claim due by 30 June of the following year. The minimum amount to apply for a refund is 1,000 SAR to initiate one.
Claim Procedure
- Quarterly Reclaim: Businesses can reclaim any calendar quarter.
- Annual Claim: Except for quarterly claims, companies are supposed to submit an annual claim on 30 June before the new fiscal year starts to be able to deduct any remaining VAT refund.
Claim Information
For the return of VAT claim to be filed, one is expected to include some information in the claim, which includes:
- Taxpayer's Name
- Tax Identification Number
- Invoice dates
- Invoice numbers
- Total invoice amount
Documentary Evidence
Although invoices do not have to be included when making the first claim for repayment, they can be requested at any later stage by the tax authorities. This means it is very crucial to store all the invoices and similar documents in a proper and organized manner.
Refund Period
Once the claim has been submitted, approved refunds are paid or processed within a 60-day cycle. This short time ensures that commercial businesses are able to make cash flow dispositions properly.
Supplemental Items
- Foreign Enterprises: Foreign Enterprises that have registered for VAT/GST in their respective countries are also able to make annual VAT refund claims in Saudi Arabia.
- Tourist VAT Refund: Authorized parties offer tourist VAT refund facilities. It enables one to claim VAT on goods and services bought during their visit.
BMS Audit- Your VAT Refund Partner
At BMS Auditing, our professionals help you get your VAT refund process running as smoothly as possible. We assist clients accurately to prepare and lodge their VAT compliance with Saudi Arabia.
Services:
- Assistance with VAT refund claims
- Comprehensive documentation support
- Timely submission of claims
- Expert advice on VAT regulations
Don't let your money leak out; instead, have professional assistance for your VAT refunds in Saudi Arabia by contacting BMS Auditing today! Let us maximize your recoverable VAT to support the financial health of your business.
