Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) has issued a strict warning to businesses. Companies subject to Value Added Tax (VAT) with annual revenues over SAR 40 million must submit their VAT returns for July by August 31. Missing this deadline could result in severe financial penalties.
Hefty Fines for Non-Compliance
ZATCA cautioned that late submissions would incur fines ranging from 5% to 25% of the tax due. The authority strongly encouraged businesses to use digital platforms, including its website and mobile app, for timely submissions. This measure helps companies avoid these costly penalties.
Understanding VAT in Saudi Arabia
VAT is an indirect tax imposed on nearly all goods and services traded by businesses in the Kingdom, with a few exceptions. It plays a significant role in the government’s revenue stream, particularly in the context of Vision 2030.
ZATCA’s Support and Guidance
The authority remains dedicated to assisting businesses in fulfilling their tax obligations. ZATCA provides various channels for guidance, including a 24/7 unified call center at 19993. Businesses can also access support through the “Ask Zakat, Tax, and Customs” account on Platform X, via email, or the live chat service on the authority’s website.
VAT’s Role in Vision 2030
ZATCA is integral to Saudi Arabia’s Vision 2030 economic reforms, focusing on increasing non-oil revenue and improving transparency in tax and customs transactions. The authority’s educational efforts ensure that businesses comply with tax regulations, contributing to the Kingdom’s broader economic objectives.
