Saudi Arabia’s Zakat, Tax and Customs Authority has reiterated the availability of financial incentives for individuals who help identify tax violations committed by commercial establishments. Under the existing reward framework, eligible reporters may receive payments subject to specific conditions, providing consumers with a formal opportunity to contribute to regulatory compliance and the protection of their rights.

The Authority highlighted the incentives in an official announcement dated October 12, 2026, alongside the results of its inspection activities during the third quarter of the year. The announcement confirmed that more than 59,000 inspections had been carried out across markets and commercial establishments throughout the Kingdom.

According to the Authority, the incentive can amount to 2.5 percent of the relevant violations and penalties, with a stated minimum reward of SAR 1,000 and a maximum of SAR 1 million, subject to the established terms and conditions.

The inspections covered several commercial sectors, particularly retail businesses, gold shops and tobacco outlets. Inspectors identified violations including failure to issue electronic invoices, failure to collect applicable value-added tax and the sale of tobacco products without the required tax stamps.

The Authority encouraged consumers to report suspected tax violations through its official ZATCA mobile application and the electronic reporting channels provided on its website. These channels allow relevant information to be submitted for review by the competent authorities.

Examples of potentially reportable violations include improper tax collection, noncompliant tax invoices, failure to provide required electronic invoices and breaches of tax stamp requirements for products subject to excise tax.

However, submitting a report does not automatically entitle the sender to a financial reward. The competent authorities must review the information, verify the suspected violation and determine whether the applicable conditions for payment have been satisfied.

Official guidance explains that reward eligibility is linked to contributing to the detection of violations and the resulting enforcement and collection procedures. The announced percentage should therefore not be interpreted as a guaranteed payment for every submitted report.

The online reporting service allows users to describe a suspected violation and provide information about the establishment concerned. Supporting documents or photographs may also be submitted where appropriate, helping inspectors evaluate the report.

The official reporting form includes an option for individuals who wish to be considered for a reward, together with the relevant terms and conditions. Users are encouraged to examine these requirements carefully before completing their submissions.

ZATCA has also emphasized the confidential treatment of reporting information, allowing the relevant teams to assess reports through official procedures rather than exposing reporters unnecessarily during investigations.

For consumers, the reporting mechanism provides a practical way to flag suspected tax misconduct encountered during ordinary purchases or service transactions. It also supports fair competition between businesses that comply with tax regulations.

Business owners can benefit from reviewing their own compliance practices, including electronic invoicing, value-added tax collection and excise tax stamp obligations, to avoid violations detected through inspections or consumer reports.

The reward program should not be confused with other government reporting schemes, which may operate under different financial incentives, eligibility requirements and reporting channels.

Individuals considering submitting reports should provide accurate and verifiable information, avoid unsupported allegations against commercial establishments and use the official government channels rather than publicly circulating claims.

Although the incentive program has existed for several years, the October 2026 announcement brought renewed attention to it following the Authority’s latest inspection results. It should not be described as a newly introduced reward scheme.

The financial incentive remains a conditional opportunity that may reach SAR 1 million in qualifying cases, rather than a guaranteed payment to every person who identifies or reports suspected misconduct.

Source: Saudi Zakat, Tax and Customs Authority