What happens on January one, 2019?
The 1st year with GCC VAT is returning to shut by this Dec and Kingdom of Saudi Arabia had been first to implement the VAT with success and comprehensively and even additional professionally than UAE.
Saudi had a additional planned approach and that they had given the terribly little traders UN agency makes solely below one Million Saudi Riyals as turnover (sales) annually to be exempt from VAT for a new year, that’s until day, 2018.
The date nearing nearer, what happens on one January, 2019 is, each business doing eligible business as outlined underneath VAT law UN agency has AN annual turnover quite SAR 375,000 however below SAR one Million has got to register for VAT and begin VAT compliances.
What will it mean to little traders?
“Take support of reliable and skilled consultants United Nations agency will cater the requirements of little entities at an inexpensive worth”
Small business units like baqalas, work shops, little traders, restaurants, tea and occasional retailers etc United Nations agency have Associate in Nursing annual sales of quite SAR 375,000 (which virtually means that all) got to register for VAT and begin VAT filing, keeping records and books as per VAT laws, get extra data from suppliers and customers to stay themselves complied with VAT laws.
Its suggested to require support of reliable and skilled consultants United Nations agency will cater the requirements of little entities at an inexpensive worth to make sure no mistakes square measure created and compliance isn’t compromised and no immense penalty is attracted.
Small traders ought to begin to suppose on the far side their typical mind-set and take this new enactment as a challenge in business and rise on top of it by obtaining themselves prepared with a decent POS, Accounting software system and support from a reliable VAT adviser. The extra value incurred for such diversifications ought to be thought-about as Associate in Nursing operational expense to avoid immense fines.
Non-Compliance = Vast Fines!
Small businesses ought to be terribly privy to the large fines and penalties which will be obligatory by the VAT Department for non compliances like –
- not keeping correct accounting and VAT records
- delay or non filing of VAT returns
- proper replies to extra data asked by department
- delay or non payment of VAT
- mistakes in VAT returns or any data provided to departmentAll these ar solely a restricted list of non-compliances and therefore there ar several listed by the VAT department in their website and the fines begin from a large SAR ten,000 forwards.
The below image shows the timeline to urge registered. The image could be a copyright of Saudi VAT Department associate degreed is shown here solely with an intention of informative and academic functions.