Economic Activity

Contents

1. Introduction

1. 1.1. Implementing a Value Added Tax (VAT) System in the Kingdom of Saudi Arabia (KSA)

2. 1.1.1. Zakat, Tax, and Customs Authority

3. 1.1.2. What is Value Added Tax?

4. 1.2. This Guideline

2. Definitions of the Main Terms Used

3. Economic Activity

1. 3.1. An Activity Being Conducted in an Ongoing and Regular Manner

2. 3.2. The Economic Activity Includes Known Economic Activities, and Activities Similar Thereto

4. Registration

1. 4.1. Economic Activity and Taxable Supplies

2. 4.2. Mandatory Registration

3. 4.3. Optional Registration

5. Economic Activities: Specific Cases

1. 5.1. Employees and Provision of Personal Services

2. 5.2. Holding Companies, Dormant Companies, and Management Companies Within a Group of Companies

3. 5.2.1. Dormant Company

4. 5.2.2. Holding Company

5. 5.2.3. Management Companies Within the Group

6. 5.3. Private Associations and Establishments

7. 5.4. Ownership of Racing Animals and Other Leisure Investments

6. Government Bodies

1. 6.1. Government Bodies Acting as a Public Authority

2. 6.2. Commercial Activities

3. 6.3. VAT Paid by Government Bodies

4. 6.4. Government Owned Companies

7. Input VAT Deduction

1. 7.1. Deduction of Input VAT for Economic Activities

2. 7.2. Apportionment Between Economic and Non-Economic Activities

3. 7.3. Apportionment Between Taxable and Exempt Activities

4. 7.4. Expenditure Incurred for Private or Non-Economic Activities

5. 7.5. Refund Claims for Authorized Entities

8. Tax Obligations

1. 8.1. Tax Identification Number

2. 8.2. Residence of Supplier

3. 8.3. Charging VAT

4. 8.4. Issuing Invoices

5. 8.5. Filing VAT Returns

6. 8.6. Keeping Records

7. 8.7. Certificate of Registration

8. 8.8. Requesting a Ruling

9. 8.9. Correcting Past Errors

9. Penalties

10. Transitional Provisions

1. 10.1. Trade Between the GCC Countries That Apply VAT

2. 10.2. Transitional Registration Threshold

11. Contact Us

12. Q&A