VAT in two minutes¶
You collect VAT for ZATCA on what you sell, and you get back the VAT you paid on what you buy. Once a period, you file a return and pay the difference.
Charge, reclaim, pay the difference¶
- Output VAT is the VAT you charge your customers on sales. The standard rate is 15%.
- Input VAT is the VAT you pay your suppliers on purchases. You deduct it from your output VAT.
- The difference is what you pay ZATCA. If your input VAT is larger, ZATCA owes you, and you can claim it back after you file.
(Tax Invoicing guideline §1.3; refunds: §10.1)
A worked example¶
In one quarter you sell SAR 100,000 of goods and buy SAR 60,000 of stock, both at 15%.
| Before VAT | VAT | |
|---|---|---|
| Sales | 100,000.00 | 15,000.00 output VAT |
| Purchases | 60,000.00 | 9,000.00 input VAT |
| You pay ZATCA | 6,000.00 |
The 15,000 was never your money: your customers paid it to you, for ZATCA.
When you file¶
| Your yearly revenue | Tax period | You file |
|---|---|---|
| Over SAR 40 million | One month | 12 returns a year |
| SAR 40 million or less | Three months | 4 returns a year |
File the VAT return, and pay, by the last day of the month after the period ends. For the quarter January to March, that is 30 April. (Tax Invoicing guideline §10.1, p. 49; VAT Implementing Regulations Art. 59(1))
What Clix does, and what your accountant does¶
| Clix prepares | You or your accountant decide and file |
|---|---|
| The VAT Filing Report: Output VAT (Sales), Input VAT (Purchases) and Net VAT Due, in the return's box order | Whether each figure is right before it goes on the return |
| Sales: the invoices, credit notes and debit notes ZATCA has Cleared or Reported, by issue date | Invoices issued after the month of supply, whose VAT may belong to the earlier period (tax point) |
| Purchases: every purchase you recorded, by issue date | Purchases you have not recorded yet |
| Notes in the Adjustment column | Which field each note goes in on ZATCA's form |
| The Filing deadline and an Export to PDF or Excel | Corrections to earlier returns |
| Filing the return on ZATCA's portal, and paying |
Clix does not file the return for you. You file it through ZATCA's Submit VAT Return e-service.
The report opens on This Quarter. If you file monthly, pick This Month or Last Month under Change period.
Next. VAT reports · Glossary