We published a blog post previously, on the Excise Tax Law in the Kingdom of Saudi Arabia, on the 11th of June 2017. With deadlines closing in on companies affected by this law, we saw the need to stress on the rules set forward by the GAZT (General Authority for Zakat and Tax).

Registration

Producers, importers, and tax warehouses still have till the 10th of July, as the last day, to be registered with the GAZT. After registration, companies need to submit a transitional tax declaration and pay the tax dues before the 25th of July, to avoid being fined. Registered businesses need to submit their first tax return for the period from 11th of June to 31st of August, no later than the 15th of September, and remit the payment of tax dues no later than the 30th of September.

Regarding Excisable goods, producers are only to produce these good in taxable warehouses. All registered parties are required to keep electronic records to enable the authority to conduct thorough assessment, to ensure the party’s commitment.

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Taxable Warehouses

Taxable warehouses should provide the following information of Excisable goods:

  1. Released Excise Goods (along with their invoices).
  2. Manufactured excise goods or processed excise goods used in production in the warehouse.
  3. Transferred or received excise goods – in tax suspension status – from and to taxable warehoused or received excise goods.

In compliance with Article number 33, companies must use a standardized goods transfer form with transported excise goods that are under the tax suspension status. Moreover, Article 38 of the law states that, the licensee of a tax warehouse must submit an unloading report once excisable goods are received. All applicants must ensure that there are sufficient safety and security procedures to minimize accidents in the tax warehouses. In case of damaged goods, Clause 5 – Article 5 states that applicants must report any incident within 7 days of partial or full damage.

For VAT support, consultations, and inquiries contact: tax@nuummiteconsulting.com

Contact our partners in Saudi Arabia via: vat@alrikaz.com.sa

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