GTL Summary:

Document Type: IR - Implementing Regulations
Law: Value Added Tax Law
Decision Number: 3839-article-59
Year: 2016
Country: 🇸🇦 KSA
Official Name: Article 59 - Payment of Tax
Last updated at: 2025-11-27 14:38:44 UTC

Chapter 10 - Procedure and Administration

Article 59 - Payment of Tax [93]

  1. Payment of Tax due by a Taxable Person in respect of a Tax Period must be made at the latest by the last day of the month following the end of that Tax Period.

  2. Payment of Tax by a Person in the case of an assessment issued by the Authority must be made before the date specified in the notification of the assessment.

  3. Payment of Tax must be made to the designated bank account of the Authority.

  4. The Person making payment must provide details of the Tax Identification Number of the Taxable Person and the Tax Period or Tax Periods to which the payment relates.

  5. For each Taxable Person, the Authority shall keep a VAT account which records:

    1. VAT due by the Taxable Person in respect of each Tax Period, including penalties and other charges relating to that particular Tax Period,

    2. The ongoing balance in respect of the overall VAT due and refundable by that Taxable Person, including any general penalties or other amounts payable in relation to VAT.

  6. Details of the balances of a Taxable Person's VAT account shall be made available electronically by the Authority for the Taxable Person to review.

  7. When the Authority receives a payment from a Taxable Person, it will first be applied to the balance of the Tax Period to which the payment refers. Any excess balance will be applied to penalties, fines or charges owing from any previous Tax Period, and the remainder will then be applied to outstanding balances for other Tax Periods, starting from the oldest period with a balance payable.

  8. The Authority may offset any VAT credit balance against any other taxes due by the Taxable Person. The Authority shall notify a Person where an offset of a credit balance is carried out.

Footnotes

[93] Paragraph 9 was added pursuant to the decision of the Board of Directors of the General Authority of Zakat and Tax No. (2-7-20), dated 12 Sha'ban 1441 AH (corresponding to 5 April 2020 AD), and deleted pursuant to the decision of the Board of Directors of the General Authority of Zakat and Tax No. (1-5-20), dated 14 Safar 1442 AH (corresponding to 1 October 2020 AD).
Prior to its deletion, Paragraph 9 read as follows:

  1. 'A Taxable Person registered with the Authority under the special registration mechanism stipulated in Article 9 of these Regulations may pay an advance amount to the Authority equivalent to the VAT that will become due upon the transfer of ownership of real estate subject to tax before the competent authority, subject to the following:

    1. The amount shall be calculated based on the declared value of the property submitted to the Authority before the transfer, in accordance with the procedure specified by the Authority.

    2. The amount shall be paid by the Taxable Person or their representative.

    3. The Authority shall retain any amounts paid in advance under this Paragraph and shall use them to offset the VAT due on the real estate supply upon transfer of ownership through the special registration mechanism, which must be declared in the VAT return for the period in which the supply occurs.

    4. In cases where multiple persons jointly own the property subject to the supply, the Authority shall determine each person's proportionate share in the event that the necessary ownership information is unavailable, based on evidence of ownership shares or any other available sources.

    5. If the transfer of ownership is not completed before the competent authority or if the value of the supply is reduced before completion of the ownership transfer, the Authority shall refund the advance amounts paid to the person who made the payment, in accordance with the procedures issued by the Authority relating to the refund of advance payments under the special registration mechanism.'

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