Guideline for

Filing VAT Returns Each VAT-registered person, or the person authorised to act on his behalf, must file a VAT return with the Authority for each monthly or quarterly tax period (as required). The VAT return is considered the Taxable Person's self-assessment of tax due for that period. Monthly VAT periods are mandatory for Taxable Persons with annual revenues exceeding SAR 40 million. For all other VAT-registered persons, the standard tax period is three months. The VAT return must be filed, and the corresponding payment of net tax due made, no later than the last day of the month following the end of the tax period to which the VAT return relates. More information on filing VAT returns is provided in a separate guideline. If the VAT return results in VAT due to the Taxpayer, or if the Taxpayer has a credit balance for any reason, a request for a refund of this VAT may be made after the filing of the VAT return, or at any later time during the next five years by filing a request for a refund to the Authority. ZATCA will review these requests and will pay the amount due on refund requests that have been approved directly to the Taxpaye26. 13.3 Keeping Records All Taxpayers are required by law to keep appropriate VAT records relating to their calculation of VAT for audit purposes. This includes any documents used to determine the VAT payable on a transaction and in a VAT return. This will generally include: • tax invoices issued and received; • books and accounting documents; • contracts or agreements for large sales and purchases; • bank statements and other financial records; • import, export, and shipment documents; and • other records relating to the calculation of VAT Records may be kept in physical copy or electronically, provided the relevant criteria are met, but in all cases must be made available to the Authority on request. 26. Article 63, Correction of Returns, Implementing Regulations All records must be kept for at least the standard retention period of 6 years. That minimum period for retention is extended to 11 years in connection with invoices and records relating to movable capital assets, and 15 years in connection with invoices and records relating to non- movable capital assets27. 13.4 Display of Certificate of Registration Within the VAT System A resident person who is subject to VAT and registered with the Authority in the VAT system must display a certificate to the effect that he has been registered in the VAT system in a place visible to the public at his main place of business and at all his branches and online stores. In the event of a contravention, the person in breach will be liable to the penalties provided for in the Law. 13.5 Correcting Past Errors If a Taxable Person becomes aware of an error or an incorrect amount in a filed VAT Return, or of any other non-compliance with the VAT obligation, they should notify the Authority and correct the error by amending the VAT tax return. Errors resulting in a net understatement of VAT (exceeding SAR 15,000) must be made known to the Authority within 20 days of detecting the error or incorrect amount, and the previous return must be amended. In connection with minor errors resulting in a difference of less than SAR 15,000, the error may be corrected by including that amount, in excess, in the net tax due that must be reported in the tax return submitted to the Authority for the tax period during which the error was discovered28. Further information on correcting errors can be found at zatca.gov.sa 27. Article 66 and Article 52, Implementing Regulations 28. Article 63, Implementing Regulations