The oversight and inspection teams of the General Authority of Zakat and Tax (GAZT) held wide-range inspection campaigns in various cities and provinces of the Kingdom with the participation of all GAZT branches. The campaign involved more than 23,000 inspection rounds to taxable establishments and sectors subject to the tax laws applicable in the Kingdom.
The inspection visits to the taxable establishments resulted in capturing 2,984 tax violations, in several commercial sectors, most notably, real estate, accommodation, and retail. Most of the recorded violations included collection of taxes less than the basic rate, absence of address for the establishment, and non-issuance of tax invoices. Some the recorded violations were reported by GAZT consumers.
Regarding customs, GAZT's oversight and field teams carried out seven joint field campaigns that aim to capture smuggled commodities by reviewing and recording documents, correspondences, commercial contracts and instruments related directly or indirectly to customs operations.
After the seven field campaigns, persons involved in customs smuggling crimes were brought before the competent courts through the Public Prosecution to face legal penalties, in addition to imposing fines on violators and confiscating the recorded smuggled goods.
The campaigns involved the participation of many relevant bodies, namely: the Ministry of Commerce, the Ministry of Human Resources and Social Development, the field officers at Riyadh Police, the Saudi Food and Drug Authority, the Civil Defense, and the National Tobacco Control Committee at the Ministry of Health.
Such inspection campaigns and visits are part of the efforts undertaken by GAZT to eliminate tax violations and smuggling crimes. GAZT carries out hundreds of inspection visits by all of its branches in various regions and cities of the Kingdom.
The Authority urges all consumers to lodge their reports against any establishment that does not apply the 15% VAT, 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.
GAZT also urges individuals to establish contact through the Security Reports Center (1910) to report any information related to smuggling crimes and violations of the provisions of the Common Customs Law. The center receives and follows up with security reports in complete confidentiality, and provides financial rewards to persons who report if the information reported is correct.