The spokesperson for the Zakat, Tax and Customs Authority (ZATCA), Mr. Hamoud Al-Harbi, reaffirmed ZATCA’s commitment to fostering an attractive business environment in Saudi Arabia for traders and investors across various sectors. This is achieved by ensuring fair market competition through the enforcement of strict compliance with zakat, tax, and customs laws and regulations.
Mr. Al-Harbi explained that promoting compliance among taxpayers helps to encourage investors, entrepreneurs, and traders to expand their operations within Saudi Arabia, thereby contributing to the development of a diverse and appealing economy. This is in line with the objectives of Saudi Vision 2030 and supports the long-term sustainability and growth of the national economy. He also urged businesses to make use of ZATCA’s services and complete guidance materials, available on its website. ZATCA offers over 130 detailed guides designed to educate taxpayers on various procedures and services, providing clear explanations of zakat, tax, and customs terms, alongside other useful insights.
He highlighted that ZATCA conducts daily audits and monitoring to identify and combat any tax evasion activities, applying legal penalties under VAT and excise tax laws. ZATCA has the right to publicly disclose the names of individuals or businesses found guilty of tax evasion. These efforts aim to ensure the accuracy of financial reporting and adherence to the relevant laws, thereby increasing compliance and reducing illegal practices. This ultimately enhances economic efficiency and supports ZATCA’s mission to safeguard the national economy.
Al-Harbi emphasized the importance of addressing all forms of VAT evasion, such as providing incorrect information, fabricating purchase invoices, or altering invoice details to reduce tax obligations. He pointed out that such violations often arise from improper practices, including using unreliable third parties to file returns, or attempts to lower, cancel, or evade taxes or fines. He also underscored the need for voluntary disclosure of relevant information that could affect audit outcomes.
In addition, Al-Harbi mentioned that importing, producing, or holding excise goods without registering with ZATCA constitutes a major form of excise tax evasion. He stressed the importance of taxpayers cooperating with ZATCA and disclosing accurate information to ensure fair taxation and accurate audit results.
The spokesperson also encouraged the public to report any instances of tax evasion. ZATCA provides financial rewards for whistleblowers under specific conditions, offering up to 2.5% of the total value of fines and penalties, with a maximum reward of SAR 1 million and a minimum of SAR 1,000.
For any inquiries, Al-Harbi urged the public to contact ZATCA through the 24/7 call center at (19993), via email at info@zatca.gov.sa, or through the “Ask Zakat, Tax, and Customs” account on X (@Zatca_Care), or by using the live chat feature available on ZATCA’s website.
