The General Authority for Zakat and Tax steps up its field inspections and issues more than 5,000 VAT violations



Riyadh, 13 May 2018:
The General Authority for Zakat and Tax (GAZT) recently stepped up its field inspection efforts which aim to follow up on the implementation of VAT by businesses. The efforts come in anticipation of the increased shopping activity normally witnessed during the Holy Month of Ramadan.

Since VAT went into effect on January 1, 2018, GAZT noted that it issued 5,212 violations against businesses that were found to be non-compliant with the VAT implementing regulations.

The majority of these violations were for the issuance of non-standard tax invoices, imposition of a tax rate exceeding the standard 5% rate, absence of a tax identification number on the invoice, and non-registration in the tax system.

In its statement, GAZT went on to add that the visits carried out by its field inspection teams targeted several sectors, including shopping centers, car maintenance centers, electrical appliance stores and food markets across all areas of the Kingdom. The inspections come as part of GAZT’s drive to ensure that businesses comply with VAT implementing regulations.

Through its field campaigns, GAZT aims to both raise awareness amongst businesses about the importance of proper VAT implementation and follow up on how businesses are applying the tax.

The General Authority for Zakat and Income (ZAKA) called on all consumers to use the VAT application, which allows consumers to know if their business is registered with VAT.

GAZT called on all consumers to use the handy VAT App, which allows them to verify whether or not a business is registered in VAT. It also allows them to report businesses in violation of tax regulations, which can also be done by calling the hotline (19993).