Saudi Arabia has issued a final tax warning to businesses, urging them to pay their tax bills before the end of the year to avoid fines. The Zakat, Tax and Customs Authority (ZATCA) has introduced the “Cancellation of Fines and Exemption of Financial Penalties Initiative,” which ends on December 31, 2023.
Under this initiative, taxpayers will be exempted from fines for various tax-related violations, including 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, taxpayers must be registered in the tax law, file all tax returns with ZATCA, and settle all pending tax returns. If requested, due taxes may be paid in instalments within the validity period of the initiative, with outstanding instalments paid on the specified due dates set by ZATCA.
It is important to note that fines for tax evasion and fines paid before the effective date of the initiative are not included in the exemption. Taxpayers can find more information about the initiative and its details, including the types of fines covered, exemption terms, instalment plans, and examples of violations, on ZATCA’s website.
The commercial sector in Saudi Arabia is encouraged to contact ZATCA for further information on VAT through various channels, including the 24/7 call centre, Twitter, email, and online instant chat.
VAT is an indirect tax imposed on all goods and services purchased and sold by most establishments, with certain exceptions. Businesses are advised to comply with the tax regulations and take advantage of the exemption initiative before the deadline to avoid penalties.
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