The oversight and field teams of the Zakat, Tax, and Customs Authority (ZATCA), last week, detected more than 700 tax violations during 5,000 inspection rounds on markets and commercial shops in various cities and regions across the Kingdom. The inspection visits aim to ensure taxpayer compliance to the tax laws.
The violations detected included non-issuance of tax invoices, collection of a tax higher than the basic rate, and absence of the tax numbers on invoices. The main sectors where violations were detected were retail, health, education, public services, real estate, workshops, and tobacco products.
The Authority's inspection rounds 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.
The Authority urges all consumers to lodge their reports against any establishment that violates the VAT laws and regulations via the VAT smart phone application or ZATCA's website (gazt.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.