RIYADH: The value added has now been implemented and it is believed that it will take the kingdom towards progress and prosperity.
The tax is imposed not only by Saudi Arabia but also by the United Arab Emirates within the outline of a unified agreement recommended by the member states of the Gulf Cooperation Council (GCC).
According to Mohammed Al-Khunaizi, a member of the Shoura Council, the imposition of VAT will help raise tax revenues of the Saudi government which will be utilized for infrastructure and developmental works. He recognizes VAT as a major move that will contribute to address various challenges and sustain growth. Furthermore, while discussing the compliance of Saudi businesses with VAT regulations, he brought under notice that today, VAT or sales taxes are key revenue sources for more than 166 countries across the world.
Al-Khunaizi also advised in favor of penalizing those who have not registered so far, or who violate the VAT laws. The Ministry of Commerce and Investment has confirmed that in support of the General Authority for Zakat and Tax (GAZT), it will extensively scrutinize the markets and commercial firms across the Kingdom to track down irregularities before and during execution of the VAT.
“The inspection tours will be directly supervised by the joint operation room for protection of consumers, which was approved by the Council of Ministers and composed of 18 government agencies,” said a ministry statement.