Aqid ERPWhere a credit balance comes from
A VAT return sets the VAT charged on sales (output VAT) against the VAT paid on purchases and imports (input VAT). When input VAT is the larger, the return ends in a credit instead of an amount to pay. It happens most to exporters, whose sales are zero-rated while their purchases carry 15%, and to businesses buying equipment or stock ahead of their sales.
Two ways to ask for it
The refund can be requested in the VAT return itself, when it shows the credit, or afterwards with the separate refund request service in the VAT section of ZATCA's portal. A request can be made within five years from the end of the calendar year the credit relates to. A credit that is not claimed stays on the account.
- The business must be registered for VAT and have a credit balance.
- ZATCA pays into the bank account (IBAN) linked to the business's main registration, so check it before you ask.
- The service has no fee.
What happens after the request
ZATCA acknowledges the request, reviews it and notifies the business of the result. It may ask for the invoices and import documents behind the input VAT, so they should be at hand: input VAT can only be deducted on a valid tax invoice or customs document. Approved amounts are paid to the IBAN on record.
How Aqid ERP records it
Aqid ERP's VAT report shows each period's net: output VAT less input VAT. When input is the larger, the period is reclaimable. When ZATCA's money arrives, record the refund against the period: one entry debits the bank and clears both VAT accounts for that period, so they are at nil for it. A refund can be recorded in parts as it is paid, and never for more than the period's reclaimable amount.