Saudi Arabia: 355 violations recorded ahead of VAT tax hike

Cairo: Saudi authorities have recorded 355 tax violations during a large-scale campaign on retail stores in the run-up to the application of an added-value tax (VAT) increase due to takes effect as of Wednesday.

The violations were spotted over three days during the kingdom-wide campaign aimed at ensuring businesses’ compliance with the VAT regulations, the Saudi General Authority of Zakat and Tax (GAZT) said.

The violations ranged between failing to keep tax records and bills, tax evasion and charging a tax value than the approved one, it added.

The agency urged owners of businesses to abide by the date set for applying the new VAT value starting from July 1. The GAZT vowed to go ahead with inspection of markets and stores across the kingdom to ensure compliance with the tax regulations.

Last month, Saudi Arabia announced tripling the VAT from 5 per cent on goods and services as part of measures to mitigate economic fallout from the impact of the new coronavirus and a fall in oil prices.