Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has urged business establishments subject to value-added tax (VAT) with annual supplies exceeding $10 million (SAR 40 million) to submit their tax returns for February.
The deadline for submission is March 31, and businesses are advised to comply with this requirement to avoid penalties.
ZATCA is a government agency under the Ministry of Finance in Saudi Arabia that is responsible for the assessment and collection of taxes and zakat, a form of obligatory almsgiving in Islam.
ZATCA has urged businesses to promptly file their VAT returns through its official website or mobile application to ensure timely submission.
Failure to meet the deadline could result in penalties ranging from 5 percent to 25 percent of the due tax amount, depending on the duration of the delay.
The authority emphasizes that early submission will help businesses avoid these penalties and remain compliant with tax regulations.
Value-added tax is a key tax system implemented in the Kingdom, functioning as an indirect tax applied to most goods and services bought and sold by businesses. This tax is levied at each stage of the production and distribution process, with the final tax burden typically falling on the end consumer. However, there are certain exceptions and exemptions, such as specific goods and services that may be either zero-rated or excluded from VAT.
According to the statement, “The authority also invited taxpayers seeking further information about VAT to contact its unified call center, available 24×7, or to reach out through ‘Ask ZATCA’ on X, email, or live chat on its official website.”
