Our Services

We help organizations ensure the reduction of their tax risks and enhance their commitment to implementing the executive regulations of the Value Added Tax ( VAT).

When Does VAT Apply to Companies

VAT is imposed in most countries when a company’s revenue exceeds a certain threshold determined by the government. In Saudi Arabia, for example, if a company’s revenue exceeds SAR 375,000 annually, it is required to register in the VAT system.

VAT Foundations and Obligations

• Tax Registration: Companies exceeding the legal revenue threshold must register in the tax system and submit periodic tax reports.
• Tax Calculation: VAT is imposed at every stage of production, from purchasing raw materials to selling the final product. The end consumer bears the tax burden, while companies collect it on behalf of the government.
• Tax Compliance: Companies registered for VAT are obligated to keep accurate accounting records and submit periodic reports to tax authorities, ensuring the correct and timely payment of taxes.

The Importance of Consulting Accounting and Legal Experts

With the complexity of accounting processes and tax requirements, companies may find it difficult to manage these matters on their own, especially small and medium-sized businesses that may not have an internal accounting team. This is where the role of accounting and legal consulting firms comes in, offering comprehensive solutions for companies, from bookkeeping to advice on VAT and other tax obligations.

Here at Erad, we save time and effort and reduce the risk of financial errors that may lead to losses or fines. They also help ensure that all the company’s financial activities align with local and international regulations, giving business owners peace of mind and allowing them to focus on their core operations.