Article 25 of the Saudi Value Added Tax Law

The agreed amount may change after the invoice is issued, or it may turn out that the tax return needs amending. This article deals with these two cases.

What does the article provide? It leaves it to the Regulations to set the controls and conditions for two things:

1. Adjusting the consideration for a supply in the original tax invoices, that is, changing the amount for which the invoice was issued.
2. Amending the tax return.

What can be taken from the article:

• Adjustment is possible in principle, but it is not absolute; it is bound by the controls and conditions that the Regulations set.
• The article does not state the acceptable reasons for adjustment, how it is done, or the period within which it is allowed; all of that is in the Regulations.

Relation to other articles:

• Article 24: requires a taxable person who becomes aware of an error in a return it filed to notify the Authority following the Regulations' procedures; this article complements it by referring the controls for amending the return to the Regulations.
• Article 26: allows the Authority to make a tax assessment regardless of the return filed, or a new assessment that amends a previous one.

In practice, a business that gives a later discount or receives returns, or needs to correct an earlier return, should follow the controls set by the Regulations and consult an accountant or lawyer specializing in tax when needed.