The Federal Tax Service of Russia
Published: 18.11.2022 15:00
Daniil Egorov, Commissioner of the Federal Tax Service of Russia, and Suhail Mohammed Abanmi, Governor of Zakat, Tax and Customs Authority of Saudi Arabia, summed up the results of two years of cooperation within the framework of the Memorandum of Understanding and Technical Cooperation in the Tax Sphere signed in October 2019. The meeting was held online.
During this period, Saudi Arabia has successfully implemented the e-invoicing system, moving toward increased transparency of transactions between VAT payers while reducing administration costs, whereas the Russian side provided colleagues with advisory consultation support.
Large companies positively assess the transition to electronic VAT reporting but still note the need to issue a large volume of other documents on paper, some of which duplicate electronic reporting. As a way to resolve this issue, the possibility of creating an electronic document interchange infrastructure for all transactional documents is being considered. This will allow for seamless tax administration. It is estimated that such a transition will lead to a significant increase in GDP, - Daniil Egorov mentioned.
Suhail Mohammed Abanmi highlighted that reform in Saudi Arabia is aimed at addressing similar issues, such as enhancing risk-based approaches, reducing reporting costs for businesses, and using big data for the whole government.
The Commissioners confirmed their intention to continue cooperation on all relevant aspects of tax administration.