“GAZT” and “Ministry of Commerce” continue their field campaigns to educate businesses on VAT registration
Riyadh, 18 December, 2018:
The General Authority for Zakat and Tax (GAZT), in cooperation with the Ministry of Commerce, Investment, continued its field inspection campaigns aimed at ensuring the VAT readiness and compliance of businesses with annual supply of SAR 375,000 or more, as well as educating them about how to register and the penalties resulting from non-registration by the December 20, 2018, deadline.
The campaign is part of GAZT’s efforts to raise awareness among businesses with annual supplies of SAR 375,000 or more and helping them register before the deadline. As part of the campaign, the GAZT inspection teams visited businesses across Saudi Arabia to inspect the readiness and compliance of their accounting systems with the VAT, including proper bookkeeping and billing, and ensuring they have a full understanding of how VAT is applied to taxable goods and services.
During the campaign, GAZT’s teams also made businesses aware of the potential penalties that will be imposed in the case of non-registration as stipulated by the VAT Law. These include the suspension of many government services, in addition to penalties related to non-compliance with filing tax returns within the specified period (between 5% and 25% of the tax amount due) and non-payment of the tax amount due (5% for each month or part thereof which goes unpaid).
The field campaigns, which commenced in December, GAZT issued 502 violations against businesses already registered in VAT. The violations were mostly related to improper bookkeeping and billing procedures and not visibly displaying the tax identification number, as well as non-collection of VAT.
Before registration on 20 December, 2018, businesses are encouraged to visit the GAZT website (vat.gov.sa) to access a wide range of useful tools and guidance materials to help ensure their tax readiness and compliance to avoid any potential penalties.
They may also contact GAZT for all their VAT-related questions via its call center (19993), Twitter (@SaudiVAT), or e-mail (email@example.com).