ZATCA proposes allowing developers to redeem VAT retroactively

Riyadh: The Zakat, Tax and Customs Authority (ZATCA) presented, on Istitla platform for public opinion a proposal for allowing the redemption of value-added tax by eligible real estate developers. Feedback will be received no later than February 8, 2024.

The proposal includes allowing all real estate developers eligible for redemption, which have deducted VAT incurred on their purchases of goods or services related to real estate supplies to claim a refund of the tax retroactively, as of October 4, 2020.

This will be carried out by including that incurred tax in the redemption applications that will be submitted to the authority. The authority obligated the real estate developer to include the tax requested to be redeemed in the application for the period in which the suspension was lifted, up to a maximum of the last period of the calendar year in which the suspension was lifted.