Procedures performed by ZATCA upon receipt of a Tax Ruling request 5.1 Accept the Tax Ruling request. Any of the reasons listed and set out in this guideline requiring the rejection of the Tax Ruling request. Whether or not the applicant provided incorrect information to ZATCA when applying for a Tax Ruling.
Where the Tax Ruling concerns the application of VAT to a particular transaction, it is usually appropriate for the supplier of the goods or services to apply for a Tax Ruling. In other cases, the recipient of the supplies can request a Tax Ruling (for example, when VAT is applied under the reverse charge mechanism for a transaction with a non-resident supplier or when it is not possible for the supplier to submit the request). If the request for a Tax Ruling is not related to the activity(ies) the applicant intends to carry out.
If the purpose of the tax assessment request is different from the purpose of an explanatory statement requested by the applicant. If the applicant is the subject of an inspection or audit by ZATCA or has filed an objection or appeal that is currently being processed in relation to the same type of tax that is the subject of the tax ruling request. If the request for a tax ruling on the case was rejected during the previous three months due to failure to present the relevant documents within the time specified by law.
Should ZATCA respond to a request for a tax opinion on the same or similar matter submitted by the same applicant.
Completing Form R1001 and Submitting Tax Ruling Request
Submitting Tax Ruling request
The completed tax ruling request form, in addition to the relevant documents, must be submitted via the Zakat, Taxation and Customs Authority e-portal, by logging into the taxpayer's profile and creating a new request by (Tax Ruling Request) from the list to choose from request. In the event that the person wishing to submit the application is not registered with ZATCA, the necessary forms and all documents must be sent by email to [email protected]. Note regarding attachments: In case of multiple attachments, please compile all documents into one PDF file and attach the file after clearly naming it.
Procedures carried out by ZATCA when receiving Tax Ruling request
- Accept the Tax Ruling request
- Request for additional information
- The rejection of Tax Ruling request- estimated reasons
- Cases that ZATCA shall have the right to initially reject the Issuance of the Tax Ruling
- Cases in which ZATCA rejects to issue the Tax Ruling after accepting the request
- The rejection of the Tax Ruling request- mandatory rejection
- The impact of the rejection of the Tax Ruling request
ZATCA may reject any tax ruling request at its discretion and without explanation. The following provides an explanation of some of the reasons why tax ruling requests are denied. If ZATCA is of the opinion that the validity of the Tax Ruling may rely on assumptions, whether for future event or any other issue.
If ZATCA considers at the time of submission of the request or at any time before the issuance of the Tax Ruling that the applicant will not complete the transaction for which the applicant has requested a Tax Ruling. If the Tax Ruling requires ZATCA to express its opinion generally on generally accepted accounting principles or commercial practices. In case of any event after the acceptance of the Tax Ruling, ZATCA is justified to refuse to issue the Tax Ruling.
If ZATCA finds that there is a reason for mandatory refusal such as the request for a tax ruling should have been rejected at the time of its submission. If the request is related to VAT and the matter is not related to the economic activity of the taxable person who requested the tax ruling or if the applicant is not a taxable person 3. If ZATCA has any concern that the Tax Ruling may be used for other purposes from the intended explanation.
If the taxpayer who requested the tax ruling is a party to a legal dispute related to the matter for which the taxpayer requested the tax ruling. If the Tax Ruling request has failed to provide ZATCA with sufficient facts and information regarding the issuance of the Tax Ruling. If the request is submitted by or on behalf of the taxpayer who provides misleading or incorrect information or statements on the previous Tax Ruling request.
If the tax ruling is issued within 3 months of the rejection of the previous request by ZATCA due to failure to provide sufficient information to ZATCA during the submission period. If the applicant did not notify ZATCA due to mandatory rejection, the tax ruling issued by ZATCA will be cancelled. ZATCA will inform the taxpayer of the reasons for rejecting a tax assessment request or refusing to issue a tax assessment.
Processing of Tax Ruling request
Assumptions
Usage of Tax Ruling by ZATCA and taxpayers
Applicability of Tax Ruling
Is the applicant can object to the Tax Ruling?
Tax Ruling Request
- Applicant’s Name
- Applicant’s TIN Number
- Are the applicant a senior taxpayer?
- First Name
- Job Title
- Contact Number 8. E-mail
- Tax Ruling Information
- Description of Case / Subject of the Tax Ruling
- Inquiries and Issues for which Clarification is Requested
- List of Supporting Documents
- Additional Information-if any-
- Taxpayer Information
- Representative Information
- Scope of Authorization (A) Acts authorized
- Termination of Authorization This authorization shall terminate
- Signature of Taxpayer
If the answer is "Yes" to any of the above questions, this issue is not suitable for ZATCA to issue a Tax Ruling. Has the Applicant or their representative with request (eg email or previous Tax Ruling) to obtain written opinion from ZATCA on the same or similar transaction. Has the Applicant checked all the guidelines and publications issued by ZATCA and has not been able to find an answer on the issue seeking a Tax Ruling.
Tax ruling is adequately covered in any of the guidelines and publications, the request will be rejected). Have the Applicant fill out a Tax Ruling form (R-1001E) or (R-1001A) and provide all necessary documents and information. 9 Is the request submitted by a person other than the taxpayer such as an agent or representative.
According to the information available to the applicant, one of the parties to the transaction has requested the subject of the Tax Ruling. If the answer is yes, please provide ZATCA with the names of other parties to the transaction. Is the Applicant under audit, investigation or inspection by ZATCA or submits an objection, appeal which currently.
I confirm that I have fully reviewed and understood the terms and conditions relating to the tax position request and none of them are affected by this request. I confirm that all the information provided is true and complete and that all the necessary information and documents to obtain the opinion of ZATCA are based on all facts and essential information. This form will not be considered for any purpose other than representation in connection with a request for a tax opinion.
For more information on requesting tax rulings, please see the Tax Ruling Guidelines available on the ZATCA website. Receive any communication from ZATCA regarding the tax ruling request, including the request or any response to the tax ruling request. Meet in person with or without the taxpayer to discuss with ZATCA the status or questions about the tax ruling request.
