MIA Consulting Private Limited

VAT Fines & Penalties in Saudi Arabia

In Saudi Arabia, ZATCA is putting heavy fines and penalties on people who don’t follow the rules about VAT. Contact MIA Consulting to avoid VAT fines and make sure you are following the VAT rules. The standard VAT rate in KSA was 5%, but there was no VAT on some goods. The new rate of VAT has been 15% since July 2020. So, look at how the fines and penalties for VAT in Saudi Arabia have changed because of this.

Is your business in Saudi Arabia set up to pay VAT? Then, you have to make sure that your business activities are in line with VAT rules and do not break the law. If you don’t follow the VAT rules in Saudi Arabia, you will have to pay a lot of money in fines.

VAT Penalties in Saudi Arabia

Using fake documents to avoid paying taxes or reduce their value

Fine: More than the amount of VAT owed, but not more than three times the value of goods and services

Moving the goods in and out of the country without paying VAT

Fine: More than the amount of VAT owed, but not more than three times the value of goods and services

KSA has a fine for late VAT registration

Fine: 10,000 Saudi Riyals

Saudi Arabia has a fine for filing a VAT return late

Fine: 5-25% of the VAT that is owed

KSA has a penalty for paying VAT late

Fine: 5% of the monthly VAT due

Getting VAT without registering for it

Fine: Up to 100,000 Saudi Riyal

Not keeping books and records in accordance with the rules

Fine: Up to 50,000 Saudi Riyal

Not letting the people who work for the tax authority do their jobs

Fine: Up to 50,000 Saudi Riyal

Getting caught breaking the rules or law about VAT

Fine: Up to 50,000 Saudi Riyal

Delay in paying VAT (beyond 30 days)

Fine: 2% of the VAT after 15 days and 2% after 30 days
Penalty: 4% of the total amount owed each year

What is the penalty in Saudi Arabia for not paying VAT on time?

5% of the value of the tax that hasn’t been paid for every month or part of a month that the tax hasn’t been paid.

What is the penalty in Saudi Arabia if you don’t send in your VAT return on time?

Not less than 5% and not more than 25% of the total amount of tax that needs to be paid.

Review and Appeals of VAT Penalties in KSA

The VAT in KSA has two separate committees that are part of the Committee for the Settlement of Tax Violation and Disputes. These committees are set up to handle appeals from taxpayers. Here’s what they are:

VAT Committee for First Instance:

In charge of finding out about violations, disputes, and claims of public and private rights and putting tax regulations into place.

Appeals Committee for VAT:

The First Instance Committee is in charge of coming to a conclusion about the arguments against its decisions. According to the rules, taxpayers have 30 days from the date of notification to appeal any decisions made by the GAZT.

If they disagree with the decision of the other committee, they have another 30 days to appeal to the VAT Appeals Committee. Once the appeal has been looked at, the Appeals Committee’s decision will be final before any court.

VAT Services in Saudi Arabia

MIA Consulting can help you remove the things that are stopping your business from growing by making VAT returns less confusing and giving you flexible solutions that fit your business needs. We tell you everything you need to know about the VAT penalties in Saudi Arabia, so you can always be on the lookout and pay the VAT on time.

MIA Consulting takes care of the boring paperwork, missed deadlines, and keeping track of the rules, so you don’t have to. They also make sure you follow the rules for VAT. We offer the best VAT services in Saudi Arabia and cover all the different parts of VAT.