Saudi Arabia: ZATCA Introduces New Guidelines for VAT Audit Procedures and Compliance

• ZATCA in Saudi Arabia has introduced new guidelines for VAT audit procedures
• Businesses will receive at least 20 days notice before an audit, unless suspected non-compliance
• Auditors may conduct on-site visits to review key documents such as VAT returns, invoices, contracts, and bank statements
• Penalties for non-compliance include fines potentially reaching up to 25% of unpaid VAT
• Businesses can appeal ZATCA’s decisions through internal committees or by escalating the case to the VAT Primary Committee
• Authority encourages businesses to maintain electronic VAT records for smoother audits and compliance
• Guidelines aim to provide businesses with a clearer understanding of their VAT responsibilities and support a more efficient tax system.

Source: regfollower.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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