Businesses in Saudi Arabia have been reminded by ZATCA of hefty fines if they fail to meet the August 31 VAT return deadline.

The Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia has issued a stern reminder to businesses subject to value added tax (VAT). Companies with annual supplies exceeding 40 million SAR ($10.7 million) are required to file their July tax returns by the end of August or face significant penalties.

ZATCA emphasized the importance of meeting this deadline and encouraged businesses to submit their returns via the official ZATCA website or its mobile application. Failure to comply with the August 31 deadline could result in fines ranging from 5% up to 25% of the VAT due, based on how long the filing is delayed.

Urgent Call for Compliance

To assist businesses with compliance, ZATCA provides various channels for support and inquiries. This proactive measure aims at ensuring that companies can meet their obligations efficiently and avoid unnecessary financial burdens.

In Saudi Arabia, VAT applies indirectly to most goods and services exchanged by businesses within the country, though certain exceptions do exist. The emphasis on timely filing underlines the government's commitment to maintaining an orderly tax environment.