The Zakat, Tax and Customs Authority confirmed that the decision to amend the VAT entitlement mechanism for establishments contracting with government agencies, which will start working from tomorrow, Monday, the first of November, is by adding a new field for supplies subject to the basic rate that is made to a government entity, and the value of the supplies must be included within The basic box, and failure to acknowledge correctly may result in the imposition of non-compliance fines in accordance with the provisions of the Law and Regulations.The Authority’s Board of Directors had issued its approval to amend the provisions of Article (20) of the Executive Regulations for Value Added Tax, which are related to determining the date of supply and tax due in specific cases.
The amendment to the regulation included changing the date of supply and the entitlement of value-added tax on all supplies of goods or services made from establishments contracting with government agencies according to contracts concluded with those agencies in accordance with the government competition and procurement system, so that the date on which the tax is due is the date of issuing an order Paying the claim related to taxable supplies in accordance with the procedures of the competition system or the date of receiving the consideration for the supply or part of it, whichever is earlier, in order to ensure that the entity receives the tax due on the supply before declaring it and paying it to the Authority in its periodic returns.
These were the details of the news Tomorrow, Monday, work will begin on amending the value-added tax mechanism for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.