18 GMT+34

How to file a tax return in the Kingdom of Saudi Arabia 2023

Raising a tax return is considered a necessary procedure that individuals and companies must undertake in the Kingdom of Saudi Arabia in order to comply with tax regulations and laws within the Kingdom. This procedure helps to provide the necessary tax information to the General Authority of Zakat and Income, thus ensuring tax compliance and avoiding legal problems and penalties.

In this article through BramSoft Approved by the Fatawa platform and the Zakat and Tax Authority in the Kingdom, we will learn about the basic steps of how to raiseAcknowledgment Tax in the Kingdom of Saudi Arabia, in addition to the most important programs available for help In filing your tax return.

What is a tax return?

The tax return is considered one of the most important tax procedures that companies and individuals must implement within the Kingdom of Saudi Arabia, as the tax return requires providing accurate information and details about income and expenses, to determine the tax amounts that must be paid.

Tax return benefit

The benefit of the tax return lies in several important aspects:

• Determine value added taxThe tax return determines the amounts due for value added tax.

• Revenue recording: The tax return helps record the revenues generated by the facility, which helps estimate the facility’s ability to bear taxes, and also shows the volume of sales made.

• Promote understandingFilling out the tax return by the facility’s officials contributes to avoiding potential conflicts between the facility and the authority responsible for collecting taxes.

• Facilitating tax collection: The possibility of submitting the tax return electronically to facilitate the tax collection process for the tax authority and reduce routine procedures.

What is value added tax?

VAT is a type of indirect tax that is levied at a rate of 15% on all goods and services, except those that are exempt or excluded from this tax, and must be submitted in the tax return.

How to file a tax return

You can easily register your tax return through the website of the Zakat and Tax Authority in the Kingdom through the following steps:

• Open the General Authority of Zakat website and log in to your account.

• Go to the indirect taxes section.

• You'll find many options there, including tax returns.

• Select Tax Returns and then choose Value Added Tax Return.

• Choose the appropriate form available for VAT.

• You can now easily fill out all the required information via the electronic form and submit your tax return.

How BramSoft systems help in filing the tax return

BramSoft provides a distinguished set of systems that make it easier for business owners of all sizes to manage their companies in effective ways by providing the necessary tools for issuing purchase and sale invoices, inventory control, account management, and points of sale. It also provides various financial reporting features, such as profit and loss reports. Inventory reports for inventory, in addition to the tax report. We will explain the most important of these systems in detail now:

Sales system

He presentsSales program BramSoft provides many services that contribute to improving buying and selling processes, as it has many features that make it a choice for your business and ensure effectiveness and efficiency in managing business operations, and the most important of these features are:

• Create quotes and issue invoicesThe system allows the creation of specific, professionally issued price quotes, and the issuance of invoices that conform to the requirements of the Zakat, Tax and Customs Authority, which facilitates the process of recording sales and purchases accurately.

• Manage orders and shipments: The system can record and track orders from their inception until they are delivered to customers, ensuring the provision of high-quality service and ensuring that customer needs are met.

• Manage prices, discounts and taxes: Users can set up and manage pricing structures and apply discounts and taxes custom-made according to the company's needs.

• Detailed reports: The system provides detailed reports on purchasing and selling operations, allowing companies to understand their business performance and make strategic decisions based on the specified data.

Who is responsible for filing tax returns?

• Enterprises that generate annual income and buy and sell their products must register for VAT by submitting a tax return according to their total income.
• If there are institutions that generate an annual income of more than 375 thousand riyals from their products and services, they are obliged to register for VAT.
• Establishments that achieve sales of more than 40 million riyals must submit a tax return monthly, while establishments that achieve sales of less than 40 million riyals must submit a tax return quarterly.
• Foreign institutions are also obligated to submit a tax return if buying and selling operations are carried out within the Kingdom.

Time period for submitting tax returns

There are two periods for submitting tax returns in the Kingdom of Saudi Arabia:

• Monthly declarationCompanies that achieve annual sales of more than 40 million riyals must submit tax returns monthly, and the first filing period is February 28 of their fiscal year.

• Quarterly declarationFor companies that achieve annual sales of less than 40 million riyals, they must submit tax returns quarterly, and the first filing period is April 30 of their fiscal year.

Advantages of subscribing to BramSoft cloud platform

• Easy access system: The BramSoft cloud system allows easy access from anywhere without the need to install programs on personal devices.
• Support interconnection with customer sites: The system can provide programmatic interfaces (APIs) for customers who own websites, allowing them to easily add quote functionality.
• Integrated programs: The system offers a comprehensive set of modules, including sales, accounting, human resources management, warehouse management, and points of sale (POS).
• Monthly subscription: The system is offered on a monthly subscription model, which provides a much lower cost compared to traditional resource management systems (ERP).
• Compliance with official authoritiesThe site enjoys registration with the Zakat, Tax and Customs Authority, in addition to the possibility of refunding money when registering and purchasing from this authority and the possibility of registering at reduced prices in taxes as a result of its recognition.
• Certified by Fatawa platform: BramSoft system has approval from Fatawa platform, which is a government platform that takes a role in electronic invoicing processes.

In the end, PramSoft's distinctive systems enable you to manage your business effectively and easily, in addition to submitting your tax return with ease, so that it is ready for submission to the Zakat Authority with the required coordination.

Questions Rumors about how to file a tax return

How do I submit a tax return electronically?

The method of submitting a tax return is as follows:

• Open the General Authority for Zakat and Tax website and log in to your account.
• Go to the indirect taxes section.
• Select Tax Returns and choose VAT Return.
• Choose the appropriate VAT form.
• Fill out the electronic form with the required information.
• Submitting a tax return.

What is the value added tax rate in Saudi Arabia?

The value added percentage on goods and products in the Kingdom of Saudi Arabia is 15%.

When will the added tax be raised in Saudi Arabia?

The General Authority of Zakat, Tax and Customs calls upon establishments to submit VAT returns for the month of March and the first quarter of 2023.