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ZATCA’s New VAT Review and Appeals Guideline in Saudi Arabia

  • ZATCA released a new VAT guideline on November 19, 2024, in KSA
  • The guideline details VAT audits, evaluations, corrections, reviews, and appeals
  • It aims to help businesses understand and comply with VAT obligations
  • KSA VAT system is based on self-assessment by taxable persons
  • ZATCA can assess VAT declarations within five years
  • The guideline formalizes ZATCA’s examination processes including on-site audits and documentation requests
  • Key provisions include amendments and corrections, dispute resolution, joint liability, and penalties for non-compliance
  • Businesses can amend VAT returns within specified timelines
  • Over-declared taxes corrected in subsequent returns, under-declared taxes reported within 20 days
  • Disagreements with ZATCA decisions can be appealed internally or escalated to the VAT Primary Committee
  • Joint liability holds businesses and advisors accountable for intentional VAT violations
  • Non-compliance can lead to fines up to 25% of unpaid VAT
  • ZATCA advises maintaining accurate digital VAT records for smoother audits
  • The guideline includes examples to illustrate principles and ensure taxpayer understanding
  • Enhances transparency and accountability for Saudi Arabian taxpayers
  • Essential for business owners, tax consultants, and finance professionals to stay informed and compliant

Source: mailchi.mp

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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