Any taxable person whose taxable supplies exceed the mandatory registration threshold of 375,000 SAR and is not registered at GAZT for VAT will be subject to fines.
To ensure compliance with regulations, GAZT conducts extensive audits and tax compliance procedures with the aim of reducing the number of non-compliant enterprises. In addition, GAZT, in coordination with the Ministry of Commerce and Investment, conducts nationwide campaigns to penalize unregistered enterprises and urge them to register for VAT.