During a workshop in the Asharqia Chamber
"Zakat, Tax and Customs" reviews the installment payment service for small enterprises
The Zakat and Tax Advisor at the Zakat, Tax and Customs Authority, Hammoud bin Abdullah Al-Harbi, reviewed the most prominent facilities that small and medium-sized enterprises can benefit from, paying zakat and value-added tax in installments, if they have difficulties in this aspect. He stressed several obligations and conditions for obtaining these services, including providing justifications for requesting installments.
Al-Harbi said during a workshop organized (remotely) by the Asharqia Chamber yesterday, Tuesday (15/6/2021), represented by the Chamber’s Business Council in Al-Khafji Governorate and moderated by the Chairman of the Council, Mazrouq Al-Balawi, that “payment of zakat or value-added tax in installments” are two services available to all registered taxpayers. The authority has establishments that face difficulties in paying the amounts due in full, and obtaining this service does not require more than logging in to the electronic portal of the Zakat, Tax and Customs Authority through the following link: Gazt.gov.sa and filling out the application, then paying the advance payment for the installment application, If the application is approved, the applicant will receive a notification of the installment plan, after clarification of the justifications for the installment request (for zakat or tax), submitting a bank statement for the last 3 months, submitting all due returns, and paying all other dues, if any.
He touched on the possibility of the taxable person choosing to calculate the net tax due for the tax period based on cash accounting as an exception to the invoice-based accounting method, as indicated in Article 45 of these regulations, provided that the value of his annual taxable supplies in the previous calendar year does not exceed an amount the amount of five million (5,000,000) riyals, and the value of the expected supplies in the current calendar year should not exceed five million (5,000,000) riyals, taking into account the second paragraph of this article and upon approval, the authority must notify the taxable person of the acceptance of his request.
He pointed out that the taxable person is not entitled to follow the cash basis accounting if he has received a notice from the authority stating that he has not complied with the provisions of value-added tax during the previous twelve months and that the taxable person who uses accounting according to the cash basis, must include his tax return Output and input tax only, for supplies of goods and services within the limits of what has been paid. The Authority has the right to request evidence that proves the value of the annual supplies deposited to the taxable person, and it may reject the request if it is not convinced that the taxable person has the right to use cash basis accounting.
He stated that “a taxable person may request the use of cash basis accounting at the same time that he applies to register or obtain his tax identification number from the authority. A taxable person who has not submitted the previous application may also request the use of cash basis accounting via applying to the Authority, provided that he has the right to do so.”
He said: “The taxable person who has been approved to use the cash-based accounting method must notify the Authority within twenty (20) days from the date it became clear to him that he no longer has the right to use this method by submitting to the Authority a request to use invoice-based accounting. , following Article 45 of these Regulations. The Taxable Person who has used the cash basis accounting method for a period of not less than two (2) years may apply to the Authority for the use of invoice basis accounting.
