The oversight and field teams of the General Authority of Zakat and Tax (GAZT), last week, detected 793 tax violations during 4,142 inspection rounds on markets and commercial shops in various cities and regions across the Kingdom. The inspection visits aim to ensure commercial establishments compliance with the tax laws.
The violations detected included the absence of the tax numbers on invoices and collection of taxes less than the basic rate, and the absence of tax stamps on tobacco products The main sectors where violations were detected were retail, professional services, and petroleum services.
GAZT revealed that the violations detected were, in a large part, reported by consumers, as the Authority's Oversight and Inspection Department received 168 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' tax compliance and prevent commercial transactions in violation of the GAZT-enforced regulations and instructions.
GAZT has reiterated its calls to taxable business owners to comply with the Kingdom's tax laws and regulations and particularly 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 urges all consumers to lodge their reports against any establishment that violates the VAT laws and regulations via the VAT smart phone application or GAZT's website (gazt.gov.sa). GAZT 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.