Frequently Asked Questions

Expected enquiries from taxpayers on postponing submission and payment of tax and zakat returns

​Q1: What are incentives included in the Initiative?

A1: The incentives covered by the initiative are as follows:

- Exemption from penalties resulting from postponing submission of tax returns and relevant payments for all types of taxes and zakat, which fall due within the initiative period (From 18/03/2020 to 30/06/2020 AD), to become due three months after the initial due date.

- Postponing the payment of VAT payable at Saudi Customs by registered taxpayers for imports related to their economic activities and they are allowed to pay such VAT through VAT return related to the importation period.

- Postponing the payment of excise tax due at Saudi Customs upon import by registered excise taxpayers for all excisable items (not subject to tax suspension) in accordance with procedures applicable for those obtaining Tax Warehouse License. The deferred tax shall be paid to General Authority of Zakat and Tax by filling and submitting a temporary return via GAZT website according to dates and periods specified in the schedule attached with Ministerial Decision on stimulus measures implemented by GAZT.

- Granting unconditional zakat certificates for 2019.

- Suspending suspension of Government services and freezing of funds during Initiative period.

- Suspending penalties for late payment of installments during Initiative period.

- Suspending penalties against amendment of returns on taxpayers during Initiative period.

- Suspending penalties against non-cooperation of taxpayers and audit penalties during Initiative period.

- Accepting installment applications without insisting on the advance payment during Initiative period.

- Expediting the payment of tax refund requests by GAZT to taxpayers demanding refund.

- Suspending the requirements for requesting to submit bank guarantees to GAZT.

Q2: What are types of taxes covered by the Initiative?

A2: Postponement and suspension cover all types of tax returns (VAT, Excise Tax, and Income Tax) as well as zakat returns, which fall due from the Initiative launch date until 30/06/2020 AD.

Q3: How long will this Initiative last?

A3: The expiry date of Initiative incentives is 30/06/2020 AD.

Q4: Will postponement of tax returns' submission affect obtaining zakat certificates?

A1:No, you will be granted unconditional zakat certificates for 2019 returns.

Q5: Will the initiative cover withholding tax returns?

A5: Yes, tax returns shall be submitted according to the following schedule:

Schedule Illustrating Withholding Tax Returns

Q6: Does Initiative include a final exemption from submitting due returns for this month?

A6: No, final exemption will not be granted, but only the deadline for submitting and paying zakat and tax returns due within Initiative period (from March 18, 2020 to June 30, 2020) will be extended by 3 months from original due date of return.

Q7: What are tax periods of returns covered in VAT postponement?

A7: Monthly and quarterly VAT returns will be deferred according to the following schedule:

Schedule Illustrating Due Dates for Submitting and Paying Monthly VAT Returns

Schedule Illustrating Due Dates for Submitting and Paying Quarterly VAT Returns

Q8: What are returns covered in Excise Tax postponement?

A8: Excise Taxpayers holding Excise Tax Warehouse License, and obligated to submit excise tax returns to GAZT, will be allowed to postpone submission of excise tax returns for March - April 2020 term only as follows:

Schedule Illustrating Due Dates for Submitting and Paying Excise Tax Returns

Q9: Does Initiative cover excise tax return for Jan/Feb 2020 period, to be submitted on Mar 15, 2020?

A9: No, the Initiative will not cover this excise tax return.  

Q10: How will VAT payment be postponed upon importation? How will deferred tax returns be made?

A10: Postponement of VAT payment does not require submission of any requests to GAZT. GAZT will activate a mechanism for postponement of VAT payment due upon importation for those subject to VAT, automatically until 30/06/2020 AD, knowing that commodities to be imported shall be related to taxpayer' economic activity in KSA.

Taxpayers who postponed payment of VAT upon importation must declare imports deferred within the same tax period of return including goods released (cleared) by Saudi Customs by declaring such goods under Clause (9) of reverse charge, provided that non-deductible part (If Input Tax is partially deductible as a result of carrying out exempted supplies) is included in the adjustment field under the same Clause of reverse charge, while declaring tax payable on actual imports (subsequent sales) of the imported goods subject to Clause (1) of basic rate imports, according to applicable procedures. For more information on how to declare tax under reverse charge mechanism, kindly see VAT Returns Guideline and General Guideline.

Q11: I have imported goods from abroad for personal or business purposes, but I am not registered in VAT system, shall I pay taxes to customs? Or Am I covered with postponement procedures?

A11: If you are not VAT-registered, or if you are importing in favor of another person, the VAT falling due on your imports will be collected by Saudi Customs during importation according to applicable procedures.

Q12: What are returns included in postponement for income and zakat tax?

A12: GAZT will extend the due date for income tax and zakat payable for the fiscal year ending in 2019 and the period for paying the related tax, by three months from the original due date for all returns falling due within 18/03/2020 to 30/06/2020 AD.

Q13: Does the Initiative allow importers of goods subject to excise tax to postpone payment of excise tax payable at Customs? What are payment procedures for such tax if postponed?

A13: GAZT will permit postponement of excise tax falling due upon importation for all persons subject to and registered for excise tax, without requiring any bank guarantee related to the due excise tax. Importers of excise goods are not required to submit any requests to postpone excise tax on import to GAZT during Initiative period, provided that importer shall submit a temporary return(s) to GAZT for imports made within the period from 18/03/2020 to 30/06/2020 according to the following schedule:

Payment of Deferred Excise Tax for Goods Imported to KSA

Q14: I imported excise goods that were released on 15/03/2020 and I paid their due excise tax, will the tax due on such goods be refunded?

A14: All imported excise goods released and for which payable excise tax was paid before the effective date of Initiative will not be covered.

Q15: What about imports brought with travelers or made by taxable freight companies (VAT and/or Excise Tax) if the actual importer is a natural person (individual) not registered with GAZT?

A15: As for imports made by a natural person, a third party (freight companies) or an organization not subject to VAT or Excise Tax, the Saudi Customs will collect such taxes on such imports in accordance with applicable procedures, and will not be included in the Initiative.

Q16: If I filled out my due return now and an invoice is issued for me but I do not pay after issuance, shall I be subject to any penalty?

A16: No, you will not be subject to any penalty during Initiative period; however, you must pay invoice before 30/06/2020, as penalties will be calculated after such date.

Q17: On 1st of April of this year, I prepared my return to be filled in and submitted to GAZT, shall I continue filling or will I be included in such Decision?

A17: Yes, you are included in Postponement Decision and it is optional to fill and pay return value on original due date. In all cases, you should submit all due returns during initiative term on or before the dates specified in the schedule attached to Initiative Decision which categorize each tax type.

Q18: If I did not submit returns falling due during Initiative term, shall I be subject to any penalty?

A18: Delay penalty will not be considered throughout Initiative period, provided that due returns shall be submitted during postponement period for each return payable within Initiative period.

Q19: If I did not submit a return, will GAZT submit such declaration on my behalf?

A19: No, GAZT will not submit your returns on your behalf and taxpayer or his/her representative must submit returns and pay tax payable thereunder prior to date specified in the postponement period for each return.

Q20: I am in quarantine and I cannot submit the return, is there an exemption if I submit a proof?

A20: There is no exemption from submitting returns. Given current circumstances, GAZT postponed submission periods by three months for each return as from 18/03/2020 to 30/06/2020.

Q21: I have submitted a return that was included in the postponement and I found later an error on entering the return, Will there be a fine?

A21: No fine will be imposed for the amendment to postponed returns; as long as such returns have been amended prior on or before the  revised due date.

Q22: I have tax installments owed to GAZT prior the start date of Initiative, Will installments be subject to a delay fine or will installment plan be canceled if I do not pay within the scheduled payment dates for the period covered by the Initiative?

A22: Failure to pay tax installments will not result in fines during the Initiative period. However, you must pay all overdue installments no later than 30/06/2020. As of 01/07/2020, delay fine for your outstanding payments will be charged. 

Q23: I would like to submit an installment request for prior payments during the initiative period, will a down payment be requested until the installment plan is approved?

A23: GAZT will not require a down payment to accept installment requests to be submitted by taxpayers between 18/03/2020 and 30/06/2020. Your installment request will be approved without a down payment request.

Q24: If the end of taxpayer's fiscal year is 30/05/2020 and the due date for submitting zakat/ tax return will therefore be 30/09/2020; will the taxpayer have an additional postponement period after 120 days?

A24: This return will not be included in the initiative, as its due date exceeds the initiative period set at 30/06/2020.

Q25: Does the postponement include bank and cash guarantees for excise tax licenses?

A25: Yes, the postponement includes bank and cash guarantees that are required to be submitted during the initiative period from 18/03/2020 to 30/06/2020. You must therefore submit such postponed bank or cash guarantees immediately after the end of Initiative period.

Q26: Will a fine for delayed payment of assessment or evaluation amounts be imposed upon assessment and evaluation of direct and indirect tax returns?

A26: The outstanding statutory fines will be suspended only during the initiative period. This suspension will not apply to the previous outstanding fines until the Initiative launch date. Therefore, the initiative period would not be included in calculation of the outstanding fines.

Q27: Does the postponement include a condition for payment of the agreed amount and 25% of the objected amount to accept the taxpayer's objection to GAZT decisions?

A27: Any request for amounts or guarantees as a condition for accepting objection requests will be suspended throughout the initiative period until 30/06/2020.

Q28: Does the postponement include bank and cash guarantees for submitting objections?

A28: Yes, the postponement includes bank and cash guarantees for submitting objections. Besides, GAZT will not request any guarantees during the Initiative implementation period.

Q29: My services are currently suspended prior the initiative date, will such suspension be ceased?

A29: Yes, your services suspension will be ceased during the initiative period from 18/03/2020 to 30/06/2020.

Q30: GAZT has seized funds prior the Initiative date, will this seizure be suspended?

A30: Yes, the seizure on funds will be suspended during the initiative period; 18/03/2020 to 30/06/2020.

Q31: What if I do not submit temporary excise tax return for the outstanding deferred tax at Customs on time?

A31: All outstanding fines provided for in the Excise Tax Law and Implementing Regulations thereof will apply.

Appendix: Illustrative statement of returns to be postponed for each type of tax and zakat

First: Value-Added Tax (VAT)

Schedule illustrating Due Dates for submitting and paying monthly VAT returns

Schedule illustrating due dates for submitting and paying quarterly VAT returns

Second: Excise Tax

Schedule illustrating Due Dates for submitting and paying excise tax returns

Third: Zakat & Tax Returns

The period prescribed for submitting Zakat and Tax returns falling due for the fiscal year ended 2019 are extended by three months for all returns due to be submitted during 18/03/2020 to 30/06/2020.

Forth: Withholding Tax

Schedule illustrating Withholding Tax Returns

Fifth: Temporary Excise Tax Returns

Payment of deferred Excise Tax for excise goods imported to KSA