Saudi Arabia has warned businesses to pay tax bills before end of the year or face fines.
The Zakat, Tax and Customs Authority (ZATCA) has urged taxpayers to take advantage of the “Cancellation of Fines and Exemption of Financial Penalties Initiative”, which ends on December 31, 2023.
According to ZATCA, as per the initiative, taxpayers are exempted from fines for late registration, delayed payment, overdue tax return filing, VAT return adjustment, and violations of e-invoicing and general provisions of VAT.
Saudi tax warning
To be eligible for exemption, ZATCA said that taxpayers must be registered in the tax law, file all tax returns with ZATCA, and settle all pending tax returns.
Due taxes may be paid in instalments if a request is submitted to ZATCA within the period the initiative is valid, provided that any outstanding instalments are paid on the due dates set by ZATCA.
The exemption initiative does not include fines for tax evasion and fines paid prior to the effective date of this initiative, ZATCA underscored.
Taxpayers may read the Simplified Guide on ZATCA’s website for details of the initiative.
The information provided includes a detailed explanation of the highlights stated in the decision extending the initiative, such as types of fines included, terms of exemption, instalment plans for financial dues, and examples of violations included in the initiative.
The authority urged taxpayers in the commercial sector in Saudi Arabia wishing to receive more information on VAT to contact it via:
- 24/7 call centre: 19993
- Twitter/X: @Zatca _Care
- Email: [email protected]
- Online instant chat: www.zatca.gov.sa
VAT is an indirect tax imposed on all goods and services purchased and sold by most establishments, although some exceptions apply.
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