KSA: The Value Added Tax (VAT) Law has been published in the official gazette

In brief

The Value Added Tax (VAT) law was published in KSA’s official gazette (UM AL-QURA) in its issue number 4681 dated 28 July 2017.

The VAT law indicates that VAT will enter into force from the start of the fiscal year following the date of its publication in the official Gazette, i.e. 1/1/2018. In addition, it gives taxable persons in KSA 30 days from the date of publication of the VAT law to register with GAZT.

In detail

In another step towards finalising the legal framework governing VAT implementation in KSA, the VAT law is now officially released in UM AL-Qura and is expected to enter into force by 1 January 2018.

The VAT draft law contains 18 chapters and 53 articles which highlight the main VAT principles that will be applicable in KSA. The VAT law also makes reference in many of its provisions to the VAT implementing regulation that should be officially released by GAZT within 30 days from the date the VAT law was issued in the official gazette. Already, GAZT has released a draft version of the implementing regulation for public consultation purposes which can be used as guidance.

Most importantly from a VAT registration perspective, the VAT law requirement is that all taxable persons have to submit their registration by 27 August 2017 to comply with the VAT law.

The takeaway

Considering the registration deadline of 27 August, taxable persons subject to the Registration requirement should make appropriate efforts to register with the GAZT before the stipulated deadline to avoid potential penalties (provided they were not automatically registered by GAZT).

Companies in preparing their VAT registration should have regard to specific documentation requirements of the GAZT for this purpose.


If you have any questions, please do not hesitate to contact Nassim Tanouti on +971 566 816 561 or nassim.tanouti@pwc.com.


Bildquelle: Tim Reckmann  / pixelio.de

5 thoughts on “KSA: The Value Added Tax (VAT) Law has been published in the official gazette

  1. The Law indeed says that the registration is needed within 28 days of publication but does not say this is a hard deadline. There is currently no portal or other means to register and one should abstain from creating panic.


  2. The law says that the records are to be kept in Arabic in KSA, What is the definition of “Records” or, what all documents are considered as “Records”?


    • The definition or what includes when the term “Record” is mentioned is not explicitly provided in the KSA VAT legislation.

      I think following description would cover the word “records”:

      “Tax Records” means all records relating to any Tax, including without limitation Tax Returns, journal vouchers, cash vouchers, general ledgers, material contracts, Tax Return workpapers and schedules, appraisal reports, authorizations for expenditures, and documents relating to rulings or other Determinations by any Tax Authority.

      In principle all records created by the company self should be in Arabic. Any records relating to documents received from suppliers, there is still a debate going on whether or not these should be translated in Arabic.

      For further details please contact Nassim Tanouti


  3. Thank you for clarifying regarding records.. Did GAZT release any notes on transitional provisions:
    For eg. If a Supply is made on the 31st of December 2017 to UAE from KSA and the material reaching the destination on 1st January 2018. What will the supplier apply on the invoice,(with VAT or Without VAT)?


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