The Zakat, Tax and Customs Authority (ZATCA) carried out 12,000 inspection visits in June 2022 to markets and shops in various regions and cities across Saudi Arabia.
ZATCA stated that the rounds carried out by its oversight and inspection teams, in collaboration with the National Anti-Commercial Concealment Program, covered several commercial sectors, most notably: the retail and food sectors. ZATCA refers that these visits aims to reinforce taxpayers' compliance to the provisions of the tax laws of the Kingdom.
ZATCA's inspection found great compliance with the electronic invoicing system (Fatoorah), as compliance rates exceeded 80% in most shops and markets. In the meantime, several minor violations were detected, mostly involving failure to issue electronic tax invoices, failure to include the Quick Response (QR) code in the invoice, and other violations to the provisions of the tax laws.
The Authority's inspection rounds on markets and commercial and service shops are part of the supervisory efforts made by the oversight and field teams to reinforce commercial taxpayers' compliance and prevent trade transactions in violation of the ZATCA-enforced regulations and instructions.
The Authority urges all consumers to lodge their reports against any establishment that exhibits any tax violations via the ZATCA smart phone application 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.
