Value-added tax in the construction sector

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    The main objective

    the program is to provide participants with the necessary knowledge and applied skills (in theory and practice) for everything related to value-added tax in the contracting sector within the Kingdom of Saudi Arabia. (In general) and the contracting sector (in particular).

    Program sub-goals:

    1. Providing participants with scientific and technical information and concepts on the concept of value-added tax and its applications in the contracting sector, within the Kingdom of Saudi Arabia.
    2. Clarify the legislative aspects related to the Unified Agreement for Value Added Tax for the Cooperation Council for the Arab States of the Gulf, the system and executive regulations, and the guides and instructions issued by the Zakat, Tax and Customs Authority regarding the contracting sector.
    3. Introducing the latest updates that have been made regarding the amendment of the value-added tax due date when contracting establishments deal with some government agencies to which these updates or amendments apply.
    4. Training participants on procedures and mechanisms related to submitting tax returns, objections, and grievances.

    PROGRAM DURATION

    2 days

    HOURS

    10 HOURS

    Language

    Arabic

    Target group:

    Accountants and financiers, lawyers and legal advisors, businessmen working in the contracting sector, and employees involved in the field of taxation in general and contracting.

    How to apply:

    In presence (Face to face) or Online.

    Main topics

    1. Theoretical and applied framework for VAT.
    2. The most important requirements for applying the value-added tax to the contracting sector.
    3. The latest updates regarding the amendment of the tax due date on real estate/contracting activity when dealing with the government.
    4. Input tax deduction provisions, restrictions, and controls.
    5. Transitional provisions and the effect of increasing the value-added tax rate.
    6. Tax return, examination and evaluation, objections, and grievances
    7. Fines and penalties for non-compliance with the added tax.
    8. Questions, inquiries, and special cases.

    Program Contents

    1. Important basic definitions and terms related to value-added tax and contracting activity.
    2. The legislative framework for value-added tax in the Kingdom, guidelines.
    1. The specificity of the contracting activity, as services related to real estate, are subject to the value-added tax in the Kingdom.
    2. Issuance of abstracts/completion reports.
    3. Tax Due Date – General Principle.
    4. Updates approved regarding the tax due date adjustment (special cases of the general principle of tax due).
    5. Provisions of the place of supply for contracting
    6. Tax imposed on import (material or equipment) / import of services (reverse charge),
    7. Guarantee / Retained Payments as Performance Security.
    8. The value of the supply in contracting, and the modifications to the supply (compensation for damages).
    1. Input tax deduction provisions, principles, and bases.
    2. Proportional deduction for input tax.
    3. Input Tax Adjustment.
    1. Transitional provisions for increasing the value-added tax rate from 5% to 15%.
      1. Contracts concluded before and after approving the increase in the value-added tax rate to 15%.
      2. Invoices concluded before and after approving the increase in the value-added tax rate to 15%.
    1. Who can file a tax return and when?
    2. Submission of tax returns for tax periods.
    3. Excluding the sales fields in the tax return.
    4. Explanation of the purchase’s fields in the tax return.
    5. Importing Services (Reverse Assignment)
    1. Theoretical and applied framework for value-added tax:
      1. Important basic definitions and terms related to value-added tax and contracting activity.
      2. The legislative framework for value-added tax in the Kingdom, guidelines.
    2. Application of VAT to the contracting sector (construction, building and maintenance):
      1. The specificity of the contracting activity, as services related to real estate, are subject to the value-added tax in the Kingdom.
      2. Issuance of abstracts/completion reports.
      3. Tax Due Date – General Principle.
      4. Updates approved regarding the tax due date adjustment (special cases of the general principle of tax due).
      5. Provisions of the place of supply for contracting
      6. Tax imposed on import (material or equipment) / import of services (reverse charge),
      7. Guarantee / Retained Payments as Performance Security.
      8. The value of the supply in contracting, and the modifications to the supply (compensation for damages).
    3. Deduction of input tax:
      1. Input tax deduction provisions, principles, and bases.
      2. Proportional deduction for input tax.
      3. Input Tax Adjustment.
    4. Transitional provisions and the effect of increasing the value-added tax rate:
      1. Transitional provisions for increasing the value-added tax rate from 5% to 15%.
        1. Contracts concluded before and after approving the increase in the value-added tax rate to 15%.
        2. Invoices concluded before and after approving the increase in the value-added tax rate to 15%.
    5. Tax return:
      1. Who can file a tax return and when?
      2. Submission of tax returns for tax periods.
      3. Excluding the sales fields in the tax return.
      4. Explanation of the purchase’s fields in the tax return.
      5. Importing Services (Reverse Assignment)
    6. Examination, evaluation, and appeal.
    7. fines and penalties for non-compliance with the added tax.
    8. Questions, inquiries, and special cases.