Zakat, Tax and Customs authority announced the reclassification of VAT violations and penalties related to field violations from taxpayers’ failure to comply with the tax duties and obligations starting on January 30, 2022.
All the penalties for field violation would begin by alerting the establishment first and no financial fines would be imposed on first-time offenders. The new reclassification aims to increase taxpayer awareness without the strict burden of financial fines. The financial fines would only be imposed if the violation is repeated with a time limit of up to 3 months from the date of penalty to ensure the correction of the violation.
A clarification by the authorities has cleared that this doesn’t include non-field violations like tax evasion violations, failure to file returns and delay in filing returns, and violation of tampering in tax filing.
The authority has further asked all the assignees to consult the new simplified guidelines to understand the new classification and would be willing to address any query related to the new classification via unified call center number (19993) or instant chat on the ZATCA website.
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