The oversight and inspection teams at the Zakat, Tax and Customs Authority (ZATCA) carried out 4,577 inspection visits to markets and shops in various regions and cities across KSA within the last week, during which they detected more than 604 violations of the provisions of the tax regulations in force in the Kingdom.
The inspection visits included several sectors, most notably: retail, general trade, and tobacco products. The violations detected included non-collection of VAT, non-display of the tax certificate, as well as absence of the tax seals on the tobacco products.
ZATCA revealed that the violations detected were, in a large part, reported by consumers through the official reporting channels, as the Authority's Oversight and Inspection Department received 90 complaints during the same period.
The Authority's inspection rounds on markets are part of the supervisory efforts by the oversight and field teams to reinforce taxpayers' compliance and prevent commercial transactions in violation of the ZATCA-enforced regulations and instructions.
ZATCA has reiterated its calls to business owners to enforce the 15% VAT, and warned that its inspection visits to the markets and commercial shops shall continue to ensure taxpayers are in compliance with the provisions of the Kingdom's tax laws.
The Authority also urges all consumers to lodge their reports against any establishment that does not apply the 15% VAT, via the VAT App or ZATCA's website (zatca.gov.sa). ZATCA offers incentive rewards for people who file reports on tax violations; rewards amount to 2.5% of the value of violations and fines, at a maximum of 1 million riyals or a minimum of 1000 riyals.