As per the General Authority of Zakat and Tax (GAZT), over 700 tax violations were uncovered during the inspection visits of over 3000 markets and shops in various cities and provinces of The Kingdom of Saudi Arabia in the past week. The Authority seized amount associated with such violations. The sectors covered for inspections included the retail, general trade and professional services.
Violations mainly included the absence of tax number on invoices, non-compliance of the provision of retention documents and non-placement of Tax stamps on tobacco products. A majority of the violations were admittedly tipped to the GAZT by the consumers through official reporting channels. After the receipt of about 194 such reports, the Authority conducted the inspections. This move aimed to garner confidence in the tax compliance system and enhance compliance with such regulations.
The GAZT warns the business owners that the concluded visits are only the beginning of their plans to ensure compliances to the VAT and other tax systems. The Authority further encourages consumers to report any violation to VAT laws if witnessed by them at the official website: gazt.gov.sa promising a 2.5% incentive of the violation seized. Fines for such violators would charter up to a maximum of 1 million riyals with a lower limit of 1000 riyals
Source: GAZT media centre