Saudi Arabia Issues Firm reminder on VAT Compliance
2 min
Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has issued a strong recommendation about the critical importance of adhering to Value Added Tax (VAT) regulations for both businesses and individuals. Highlighting the necessity for punctual and precise VAT submissions, GAZT aims to mitigate penalties and legal issues stemming from non-compliance.
GAZT, which oversees the kingdom’s tax affairs, has stressed that all entities subject to VAT must meet their obligations accurately and on time to avoid severe penalties, including financial sanctions and potential legal action.
The authority has noted an alarming trend of VAT non-compliance, prompting a call to action for businesses to ensure record-keeping and accurate reporting. This move is crucial in avoiding inconsistencies in VAT records and submissions.
Introduced in 2018, Saudi Arabia’s VAT framework is essential for diversifying the kingdom’s revenue streams and supporting its economic development goals. GAZT’s warning is aimed at preserving the tax system’s integrity and promoting a transparent and equitable financial environment.
GAZT has warned of strict enforcement actions against those neglecting VAT duties, including detailed audits and fines, urging entities facing compliance challenges to seek expert advice. This advisory is particularly timely as the deadline for VAT filings looms, reminding stakeholders to provide thorough and timely VAT returns to sidestep penalties.
While recognizing the compliance of the majority, GAZT underscores the collective responsibility to maintain the tax system’s integrity. Entities are encouraged to stay up with all VAT policy updates and changes to ensure continuous compliance.
In essence, the General Authority of Zakat and Tax’s directive to Saudi businesses and individuals is clear: adhere strictly to VAT regulations, submit filings on time, and maintain accurate records to evade legal and financial repercussions. As Saudi Arabia focuses on economic diversification, maintaining VAT compliance is pivotal for sustaining a strong and transparent financial ecosystem. Businesses are encouraged to promptly review and improve their VAT compliance practices, seeking professional help as necessary to align with the kingdom’s tax regulations and support its economic advancement.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Employment grew for the 16th consecutive month as companies expanded.
2 min
According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
