Saudi Arabia has notified businesses with an annual revenue exceeding $99,000 (SR375,000) that they must register for VAT before December 20 if they have not already.
In August, the General Authority for Zakat and Tax (GAZT) found 323 VAT related violations in the retail industry alone. GAZT have said that companies who are found to be in violation of the VAT laws and regulations would receive a penalty.
VAT violations include; failure to present VAT registration certificate, failure to use proper invoice forms with individual and unique tax numbers and the issuance of invalid invoices.
Since VAT was introduced in Saudi Arabia from January 1 2018, the GAZT has publicized awareness campaigns to ensure companies implement VAT correctly. GAZT has also encouraged consumers to use the VAT application system so consumers can check the companies they purchase from are VAT registered.