A tax return is considered one of the essential documents required by modern tax systems. It must be submitted regularly by establishments and individuals to the competent authorities. In the Kingdom, the Zakat, Tax and Customs Authority regulates the process of filing tax returns easily.
It also sets simple electronic steps that must be followed to file the return. In this article, we will explain how to file a tax return through the website of the Zakat, Tax and Customs Authority, and the information that must be included in the return.
What Is a Tax Return?
A tax return is a document prepared by companies to show the income generated from various businesses and commercial activities. It also includes the establishment’s expenses in detail.
The annual tax return is submitted to the Zakat, Tax and Customs Authority every quarter to cover the accounting period that has ended. If the allowed period expires, the taxpayer may be subject to a fine ranging from 5% to 25% of the tax amount due to late payment.
How to File a Tax Return
A tax return can be filed electronically as follows:
- Log in through the website portal of the Zakat, Tax and Customs Authority.
- Go to the tax section, then click on the Value Added Tax option.
- Then click on returns, then choose the option to submit a new return.
- Fill in the required data accurately, such as purchases, sales, tax rates, and exemptions.
- Make sure that the establishment’s tax number or the individual’s tax number is correct.
- Attach the approved tax return form.
- Review the tax return, then click the option to upload the tax return and submit the final version.
If a tax related to a real estate transaction appears and you believe there is an error in its calculation or application, you may need to know the method for objecting to real estate transaction tax, so that you understand the grievance steps and protect your rights before or after filing the tax return.
Entities Required to Submit a Tax Return
The tax return is an essential part of the tax system in Saudi Arabia. Below, we explain the entities required to submit this return:
- Establishments that generate annual income and sell and purchase products.
- Institutions whose annual income from services and products exceeds SAR 375,000.
- Tax returns must be submitted monthly by establishments whose sales exceed SAR 40 million.
- Establishments whose sales are less than SAR 40 million submit a quarterly tax return.
- Foreign institutions must also submit tax returns as long as the sale and purchase transactions take place in the Kingdom.
Before submitting the tax return, learn about the penalty for tax manipulation, so that you understand the seriousness of entering inaccurate data or hiding influential financial information.
Main Information That Must Be Included in the Tax Return
There is certain main information that must be included in the tax return, including:
- Value Added Tax registration number (VAT).
- The time period covered by the return.
- Value Added Tax on outputs and sales.
- The refundable amount or the total amount due.
- If there are corrections or amendments to previous tax returns, they should be clarified in the return.
- Withholding tax, which relates to tax deducted from certain payments such as salaries, commissions, rent, and interest.
If your establishment owns or sells real estate, it is important to learn about the real estate tax calculator before preparing the tax return to ensure that obligations are calculated correctly.
Why Is Nawaf bin Awad Al-Harbi Law Firm Your Most Suitable Choice When Filing a Tax Return?
Filing a tax return is a procedure that requires accuracy in preparing data and commitment to legal deadlines and requirements. Any error or lack of information may result in fines or tax disputes that can be avoided through proper preparation.
Therefore, Nawaf bin Awad Al-Harbi Law Firm provides specialized legal services to help individuals and companies understand their tax obligations and comply with the applicable regulations.
The firm’s services include providing legal consultations related to tax returns, reviewing documents and data before submission, clarifying legal obligations, and representing clients in tax objections and disputes when needed.
Thanks to its experience in commercial and tax regulations, the firm helps its clients manage their tax obligations confidently, reduce legal risks, and ensure compliance with regulations in a way that supports the stability and continuity of their businesses.
Contact now with the best tax lawyer to submit your tax return correctly, ensure that all legal data is completed, and follow up on its electronic submission before the Zakat, Tax and Customs Authority to avoid any potential violations or fines.
Conclusion
Thus, we have shown you how to file a tax return electronically through the website of the Zakat, Tax and Customs Authority. There are entities that must submit a tax return, whether monthly, annually, or quarterly. It can be filed electronically as explained in this article, in addition to clarifying the information that must be included in the return.
Frequently Asked Questions
Can a Tax Return Be Amended?
Yes, a tax return can be amended after submission if there is an error in it, by accessing the website of the Zakat, Tax and Customs Authority, then clicking the amended return option and modifying the required data, after which the amended tax return is resubmitted electronically.
What Is the Fine for Amending a Tax Return?
A fine is imposed for amending the tax return if it is amended after the specified deadline. This fine may reach 5% of the VAT difference for each month of delay. It is preferable to refer directly to the Zakat, Tax and Customs Authority to determine the exact amount based on the case.
