Value added tax
Requirement
In Saudi Arabia, VAT is applied to the supply of goods or services and includes all economic activities that are conducted in Saudi Arabia. The rate is 5%.
M3 solution
The calculation, accounting, reporting, and reconciliation of value added tax is supported by generic functionality in M3. Country-specific functionality is then configured from this standard functionality, and delivered with the country version:
- VAT reports and electronic reporting
- Unpaid supplier invoices
- VAT reports by voucher number
- VAT reports by invoice number for customer and supplier invoices
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| MNS100/G | Company. Connect Division | Specify the tax method per division. |
| CRS030 CRS031 |
VAT Code. Open VAT Rate. Open |
Specify the VAT rate by date, country, and area or state. |
| CRS045 | Country. Open | In the Chk dig mtd VAT field, set the validation method for the check digit of the VAT registration number to 03. |
| CRS395 | Accounting Rule. Set | Configure all VAT setups. |
| CRS610/J | Customer. Open | Specify the VAT registration number of the customer. |
| CRS620/E | Supplier. Open | Specify the VAT registration number of the supplier. |
| CRS630 | Accounting Identity. Open | Set the VAT account types as required. |
| OIS002/F | Customer. Connect Addresses | Optionally, in the VAT reg no field, specify the VAT registration number. |