- 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.
