VAT return
In one sentenceA periodic form in which the business declares its sales, purchases, and the VAT due, filed and paid by the end of the month following the end of the period.
Simply put
The return brings together all invoices of the tax period: sales and their VAT, purchases and their VAT, then calculates the net VAT due or refundable.
Filing the return or paying the tax late exposes the business to penalties, so it is advisable to reconcile the figures with the books a few days before filing.
Worked example
An electronics store in one tax period.
Output VAT on sales (200,000 × 15%)30,000 SAR
Input VAT on purchases (120,000 × 15%)18,000 SAR
Net30,000 − 18,000
VAT due for payment12,000 SAR
Formula: Net VAT = output VAT − input VAT
Don't confuse it with
Zakat returnThe Zakat return is annual and calculated on the Zakat base, while the VAT return is periodic and calculated on sales and purchases.