Saudi Arabia and the UAE recently announced that the VAT will be taking effect at the beginning of 2018. Unfortunately, according to the Saudi Gazette, a number of companies are now taking advantage of people’s lack of knowledge about the VAT, and trick them into paying more than the actual 5% tax.
So what’s the solution here? The General Authority of Zakat and Tax (GAZT) just launched the VAT application in both the Apple Store and Google Play Store to counter the issue. The app is in both languages Arabic and English, making it much more accessible to people and to help them know and preserve their rights.
One of the users, Rana Suliman commented on the effectiveness of this app saying, “I knew about VAT application from the official website of (GAZT) and I find it very helpful. I am using it since the imposition of the VAT. I tried it for the first time with Danube Supermarket. As soon as I added the VAT ID written in my supermarket bill, the application showed me that it is indeed registered in the VAT system under the Bin Dawood Superstores Trading Company. Therefore, I was confident paying the VAT. Not only that, but I also calculated the total VAT based on my purchases and it was the right amount I was asked to pay.”
Through the VAT app, users can make use of the VAT Calculator to calculate the right amount of tax they’re supposed to pay based on the total amount of their purchases. They can also look up and verify the registration of the entity in the VAT by using the inbuilt QR Code Scanner or the Commercial Registration Number or the Tax Identification Number.
For more information about the app, read here.