Tours of companies and markets to start on Jan. 1
Tax authorities in Saudi Arabia plan to launch inspections of companies to ensure compliance with new value added tax regulations in the new year, the General Authority of Zakat and Tax said.
Inspections will be carried out on companies and market places to detect commercial violations of new VAT laws coming into effect on Jan 1, the General Authority of Zakat and Tax (GAZT) said on its website.
Inspection teams from the Ministry of Commerce and Investment (MCI) in cooperation with the GZAT will tour shops and outlets and issue fines on the spot for tax breaches, they said.
Consumers should ensure that sales receipts for goods or services clearly list the date of issue, the company’s VAT identification number, and the percentage of VAT charged (5 percent or 0 percent for exemptions), the statement added.
Companies were also urged to clearly detail the charges for VAT and exemptions on receipts.
Consumers can also check if a company is registered for VAT by entering the company’s 15-digit VAT number on the government VAT website.
Companies who issue VAT invoices without registering for VAT are subject to fines up to $27 000 (SR100,000), they said.
Companies with an annual revenue of more than USD $270 000 (SR1m) who fail to register for VAT will be fined $2,700 (SR10,000).
Evasion of VAT payments will accrue a 5 percent fine of the amount avoided per month.
A failure by companies to declare VAT will result in penalties from 5-25 percent of the undeclared amount.
The GAZT stressed that non-compliance will deprive companies with many government services.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.