- ZATCA has initiated tax audits on hundreds of taxpayers in Saudi Arabia, focusing on VAT and real estate transaction tax
- VAT revenue makes up almost 70% of total tax revenue collected by ZATCA
- Larger taxpayers can expect an audit once every one to three years
- Audits can be triggered by various factors, including VAT refund requests
- Draft Zakat and Tax Procedural Law may introduce penalties for erroneously requested VAT refunds
- Taxpayers should review compliance matters before claiming substantial refunds
- Practical points for businesses during audits include providing complete and relevant information, and retaining evidence for RETT audits
- ZATCA is particularly interested in how tax base value is calculated and evidence supporting exemptions in RETT audits.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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