Saudi Arabia warns businesses: Pay VAT now or face fines

The Zakat, Tax, and Customs Authority (ZATCA) in Saudi Arabia has issued a stern warning to commercial establishments, stressing the importance of settling any outstanding value-added tax (VAT) payments before the end of the year to avoid penalties.

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Targeted Businesses and Deadline

ZATCA has specifically addressed businesses with annual revenues exceeding SR40 million ($10.7 million) from goods and services. These establishments are required to submit their VAT statements for the month of November by December 31 to ensure compliance with tax regulations.

Submission Methods and Prompt Payment Encouragement

To streamline the process, ZATCA has encouraged eligible businesses to utilise the online platform for submitting tax statements or the ZATCA smartphone application for prompt and efficient payment. The authority emphasises the need for businesses to adhere to the deadline to prevent incurring fines, which can range from a minimum of 5% to a maximum of 25% of the outstanding tax amount.

Communication channels for assistance

Commercial taxpayers can get help from ZATCA through a number of avenues because the organisation understands that tax issues can be complicated. Here are several ways that businesses may get in touch with ZATCA if they need more details on VAT:

  • Call Centre: Dial 19993
  • Twitter: Reach out to @Zatca_Care.
  • Email: Send inquiries to [email protected].
  • Online: Visit the official website at

Understanding VAT and Exceptions

Every business that buys or sells products or services is subject to value-added tax (VAT), an indirect tax. But there are several factors that could make an exemption applicable.

Key considerations and compliance importance

Particularly for companies with large yearly revenues, the urgent need for VAT compliance is underscored by the warning from ZATCA. The kingdom's dedication to a strong and disciplined fiscal environment is reinforced by the clear communication channels that are offered to help businesses understand and satisfy their VAT requirements. This approach is in line with larger initiatives aimed at improving tax procedures and promoting fiscal responsibility.

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