Saudi Gazette report

Riyadh — The General Authority of Zakat and Tax (GAZT) called on consumers to make sure that any receipt for commodities or services should contain the date of issuance, the issuing company’s Value Added Tax (VAT) identification number, the percentage of VAT (5% or 0% if exempted).

Companies should have clear receipts specifying the commodities and services exempt from VAT.

Consumers can verify whether a company has VAT registration by entering the company’s 15-digit VAT number through the link www.vat.gov.sa/ar/vat-taxpayer-lookup.

GAZT urged all registered companies to issue valid invoices when importing commodities subject to VAT.

VAT entered in the invoices should be on the final lowest price if there are any discounts on commodities imported.

Companies which issue VAT invoices without registering in the VAT system will be fined a maximum amount of SR100,000, the General Authority of Zakat and Tax (GAZT) announced on Sunday.

Companies with an annual revenue of more than SR1 million which have not yet registered for VAT will be fined SR10,000.

GAZT called on all companies to register before Jan. 1 when VAT will be implemented in the Kingdom.

Those who fail to register before Jan. 1 will also face other penalties related to non-abidance by tax declaration and payment of VAT.

VAT payment avoidance will result in 5% fine of the VAT value that has not been paid for each or part of the month.

Non-declaration of VAT during the specified period will result in a minimum fine of 5% and a maximum of 25% of the tax value which should have been declared.

The companies which fail to comply with VAT regulations will be deprived of many government services.

GAZT urged companies to submit the required documents related to VAT.

The should confirm the accuracy of the data presented. Submitting inaccurate data with the intention of VAT evasion will result in stiff penalties against the violator.

These include a minimum fine on the required tax value. The fine should not exceed thrice the value of the commodity or services for which tax evasion was made.