GAZT: More than 4,700 violations issued in different regions of the Kingdom

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Riyadh, April 11, 2018:


The General Authority for Zakat and Tax (GAZT) confirmed that it issued 4,794 violations in various regions of Saudi Arabia in the first 100 days since VAT was implemented in the Kingdom in the beginning of January.


GAZT noted in a statement that 21% of the violations were issued in the Makkah Province, 18% in Riyadh Province and 11% in the Eastern Province. The remaining 50% was distributed across the Kingdom’s other provinces. 


Hmoud Al-Harbi, spokesman for GAZT, said that GAZT’s field inspection teams have conducted 12,578 field inspections across Saudi Arabia since the introduction of VAT on January 1, 2018. These visits covered shopping malls, hospitals, pharmacies, gold shops, electronics stores and others.


"Through these field inspections, GAZT is ensuring proper and smooth implementation of all VAT procedures in order to minimize violations issued by GAZT thanks in large part to reports received from consumers and the ongoing inspection team visits.”


"During the field inspection, GAZT also informs businesses about the importance of applying VAT and following up on its implementation. After 100 days of applying the tax, we can attest that we have witnessed overwhelming compliance by businesses to the tax law and its implementing regulations. Among the measures undertaken by businesses to ensure smooth application of tax via employee training and updating of tax-related accounting and IT systems,” Al-Harbi added. 


The majority of the violations issued by GAZT were related to failure to register in the tax system, failure to pay the tax due during the specified period, failure to file tax returns on time, issuance of non-compliant tax invoices, and collection of tax in excess of the legal 5% tax rate.


GAZT furthermore renewed its call for consumers to make use the VAT smart phone app as it allows them to know whether the businesses they deal with are in fact registered in the VAT system and report violating businesses, noting at the same time that they call also contact GAZT via the VAT website (www.vat.gov.sa) or through the call center (19993).