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Will VAT registration result in the loss of competitive advantage compared to enterprises and persons not registered in VAT within the same sector?

Registration on GAZT for VAT does not affect the competitive advantage against non-taxable enterprises and persons within the same sector.
When registering in VAT, the taxable person pays VAT on the inputs to the suppliers within the supply chain, and 5% VAT should be charged on the taxable supplies provided to the customers, with the ability to deduct/refund the tax due on the inputs from the tax collected on the output. In comparison, non-taxable enterprises bear VAT on inputs where they cannot deduct/refund this tax, and therefore pass on this cost to their customers, as a part of the cost of supplies.

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Last Update: 04 Sep 2020 06:06 PM Saudi Arabia Time