For Business Owners

The Hassle-Free Way to VAT Submission

Last updated Friday, June 14, 2024
VAT Submission


For businesses, particularly in regions where VAT (Value Added Tax) is imposed, navigating the complexity of VAT submission can be a significant challenge. Not only is it essential to understand the intricacies, but any misstep could lead to non-compliance and subsequent penalties. Fortunately, the digital era offers a solution to simplify this taxing procedure.

Streamline your VAT submission from the start. Experience seamless VAT management with Wafeq.

Understanding VAT Return

VAT Return serves as a mirror, reflecting a company's sales and purchases, and showcasing the amount of VAT owed or reclaimed. At its core, a VAT return provides a detailed summary of transactions subject to VAT within a particular period.

The layout of the VAT return is systematic and precise. It is broadly segmented into two distinct sections: the VAT levied on sales (output tax) and the VAT paid on purchases (input tax). As businesses record their transactions, they will populate up to sixteen distinct boxes, each elucidating a specific kind of transaction. Some boxes directly receive data, while others, shown in grey, derive their values from pre-entered data.

Dissecting the VAT Return Form

Let's demystify the contents of these boxes:

Standard-rated Sales and Adjustments: This records the total value of goods and services taxed at the standard 5% rate. Also, it considers adjustments for previously reported sales, like product returns.

First House Sales/Private Services: Details the value of goods and services rendered to Saudi citizens by private sector entities, along with necessary adjustments.

Zero-rated Domestic Sales: Captures sales within the Kingdom of Saudi Arabia subject to a 0% VAT rate, including adjustments for prior filings.

Exports: Documents the value of goods and services with a 0% VAT exported internationally.

Exempt Sales: Encompasses goods and services exempt from VAT, both locally and internationally.

Purchases: This covers standard-rated, zero-rated, and exempt purchases made within the period, inclusive of any adjustments from prior periods.

Net VAT: Represents the aggregate VAT for the period. A negative value suggests a claimable amount.

Simplification with Wafeq

One of the standout features of using platforms like Wafeq is the automation of the VAT return process. Instead of manually compiling data, Wafeq seamlessly generates the VAT return in the required format, ready for submission.

For regions such as Saudi Arabia and the UAE, the VAT return is available in formats tailored to their respective tax authorities. Businesses in unsupported regions aren't left behind either; they can generate tax reports to assist with VAT filing.

Read more: Understanding Value-Added Tax (VAT): A Comprehensive Guide.

Watch the video to learn how to issue your company's VAT return.

How Wafeq Streamlines VAT Returns

With Wafeq, getting your VAT return is a breeze:

  • Navigate to Reports on the main menu.
  • Under the Tax heading, select the VAT report.
  • Specify your desired date range for the return.

With a single click, export the report in your preferred format, be it PDF or Excel.

This VAT Return, perfectly tailored, aligns with your tax authority's stipulated format, ensuring compliance and precision.

Concluding Thoughts

In the intricate web of business financials, VAT submission stands out as a crucial thread. Mismanaging it could lead to legal repercussions. But, with modern tools like Wafeq, businesses have a reliable ally, making VAT submissions straightforward and hassle-free. As we journey through this digital age, adopting such tools is less a choice and more a necessity for businesses seeking growth and sustainability.

Ready to simplify your VAT submission? Discover the effortless approach with Wafeq.