Carry forward instead of refund
Should I claim the refund or just carry forward?
The situation
A credit can be carried forward to future returns instead of claimed as a refund. Carry forward needs no separate request, while a refund goes through ZATCA review.
The law
- VAT Implementing Regulations as amended 2025, refund rules: Refund eligibility, documents and correction of refund applications were updated; designated persons minimum refund SAR 5,000
What it means for you
If you expect to owe VAT soon, carrying forward avoids review effort. Example: credit SAR 12,000 and expected output SAR 15,000 next quarter: carry forward. For large or recurring credits, claim.
What to do
- Forecast next quarter's VAT.
- Choose carry forward or refund.
- Record the decision.
We can do this for youVAT refund claim for excess input VAT: exporters, start-ups and capital spend: SAR 3,500