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Saudi inspectors find over 150 violations ahead of VAT deadline

Saudi inspectors find over 150 violations ahead of VAT deadline

Businesses with annual revenue exceeding SAR375,000 must register for VAT by next week

Saudi Arabia’s General Authority for Zakat and Income Tax found more than 150 violations of the kingdom’s value added tax system during a recent inspection tour.

The campaign, carried out in cooperation with the Ministry of Trade and Investment, was designed to monitor readiness as a new set of businesses become applicable for the 5 per cent VAT rate.

From January 1, businesses with annual revenue exceeding SAR375,000 ($99,960) will have to file their tax returns. Those that fail to register by the December 20 deadline face fines and the suspension of government services.

Read: Saudi warns VAT deadline for businesses with SAR375,000+ in revenue fast approaching

The tax authority said 20 teams of inspectors visited businesses to ensure the readiness of accounting systems, recording keeping and billing.

More than 150 instances of non-compliance were found during these inspections related to not keeping records and invoices, collecting tax higher than the 5 per cent rate and the non-collection of VAT on taxable goods.

“The Zakat and Income Tax Authority has renewed its call for enterprises that have not yet registered to register before December 20, 2018 to avoid being subjected to systematic penalties and urged enterprises to visit the official site VAT.GOV.SA,” according to Saudi Press Agency.

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