Import VAT
In one sentenceVAT paid when goods are brought into the Kingdom, calculated on their customs value plus customs duties.
Simply put
The tax is paid at customs before the goods are released, and is calculated on the customs value and the duties together, not on the supplier's price alone.
A registered importer later deducts it as input VAT in its return if the goods are for a taxable activity, so keep the customs documents in your business's name.
Worked example
An auto parts store imported a shipment with a customs value of 50,000 SAR, assuming customs duties of 2,500 SAR for illustration.
Customs value50,000 SAR
Customs duties (assumed)2,500 SAR
VAT base50,000 + 2,500 = 52,500 SAR
VAT 15%52,500 × 15%
Import VAT paid at customs7,875 SAR
Formula: Import VAT = (customs value + customs duties) × 15%
Don't confuse it with
Reverse chargeVAT on imported goods is usually paid at customs, while reverse charge is common on services bought from abroad.
in FullScreen ERP
The purchases module allocates shipping and customs costs to the imported items. Purchasing and suppliers