The General Authority for Zakat and Income has called on consumers to use the VAT app, which allows them to check whether the business they are dealing with is registered for VAT, and through which they can report non-compliant businesses or contact the Authority’s call center at (19993). The Authority also urged consumers to ensure they receive an invoice that includes VAT, the business’s tax identification number, and the applicable tax rate (5% or 0%) (if the item is subject to zero percent tax), when purchasing a service or item from a VAT-registered business.

In addition, the Authority announced that it had detected numerous violations on the first day of VAT implementation, and issued more than 120 violation notices against businesses violating the tax system and its implementing regulations across all regions of the Kingdom, just a few hours after VAT came into effect. The violations include failure to register on the tax portal despite being required to do so, some businesses imposing VAT prior to its implementation, and issuing tax invoices that do not meet the statutory requirements for VAT purposes.

The General Authority for Zakat and Income Tax reiterated that businesses not registered for VAT cannot issue invoices that include the tax rate, while the issuance of an invoice that does not include VAT by an unregistered business is not considered a violation of the law. The Authority had previously launched a “special VAT app” that allows consumers to verify a business’s VAT registration by scanning the barcode on the VAT registration certificate, entering the commercial registration number, or entering the 15-digit tax number shown on the business’s invoice. This app aims to limit any attempts at manipulation or fraud that consumers may encounter, as it includes several features, including a “calculator” service that allows users to calculate the VAT on an invoice, and a “Report” service, which allows users to file reports against non-compliant businesses.