After the launch of new VAT laws in Jeddah, Riyadh, KSA, it has impacted drastically on each and every commodity. Though the Government has achieved considerable economic growth, there’s no denying the reverse consumer behavior. Besides, an individual who has got the decision for the VAT penalty Saudi Arabia may file the grievance before a competent judicial authority.

This has to be done within a timeframe of 30 days from the date of the decision. And in case an individual fails at doing it, the GAZT decision will get considered the final one. In addition to that, it can’t be appealed before any other authority.

Outlining Everything about KSA VAT Penalties

Saudi Arabia has already introduced a multitude of incentive measures in order to offer business aids during the pandemic crisis. The prime measure applying the VAT is the three-month deferment of payment and filing deadlines.

The deferment applies to the VAT periods that end from 28 February 2020 to 30 May 2020. Besides, the deadlines for excise tax returns in between the period of 1 March 2020 and 30 April 2020 got extended to 15 August 2020. The complete details of Saudi measures include the measures applying to the direct tax.

Illustrating VAT Penalties Suspended

Besides the deadlines’ deferment, the General Authority for Zakat &Tax already announced that no VAT Penalties in Jeddah, Riyadh, KSA would get levied on the taxpayers who make corrections to the previous VAT returns. The same rule applies for the one who submits late VAT returns from 18 March 2020 to 30 June 2020. However, the tax must be paid by 30 June 2020.

Penalties for late VAT payments and errors are high in KSA. Thus, the temporary waiving of the penalties is a significant incentive for the taxpayers to deal with identified errors, which aren’t corrected yet, in order to ensure that the returns and payments are updated.

The VAT return’s correction normally attracts the 50% penalty of the concerned tax, in addition to the delayed 5% payment penalty of the payable tax each month. The late filing penalty of the VAT return is from 5% to 25% of the total VAT due, besides the 5% penalty delayed will getcharged.

Taxpayers must take this opportunity and review the VAT accounting. It will ensure that everything is updated and no issues are there that require any correction. If errors get discovered, they must be corrected as the soonest. In addition, the VAT must get paid within the given suspension period. On this note, here are the steps to appeal for VAT penalties in Jeddah, Riyadh, KSA.

Steps to Appeal VAT Penalties in KSA

Step 1: First and foremost, the taxpayer must appeal the administrative penalty imposed within 30 days from their notification date.

Step 2: The next thing that needs to be done is to file the objection with the Tax Appeal Review Committee.

Step 3: After the Committee submits one’s recommendation letter to the authorized individual within 30 days, the taxpayer must wait.

Step 4: The authorized person should give 15 days.

This way, one can appeal for VAT penalties in Jeddah, Riyadh, KSA.

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Tax Representative, VAT Fiscal Representative KSA