“Zakat & Customs Authority publishes new classification of VAT violations and penalties

Categorizing field violations

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The Zakat, Tax and Customs Authority (ZTCA) has started to reclassify VAT violations and penalties related to field violations that result from a taxpayer's failure to comply with their tax duties and obligations, as of yesterday, Sunday, January 30, 2022.

The ZTCA has started to reclassify <span class="has-inline-color has-vivid-red-color All penalties for field violations start with warning the facility first and educating the taxpayer and not imposing any financial fines when committing the violation for the first time, while financial fines are imposed only when the same violation is repeated, with a time limit of up to three months from the date of imposing the penalty, to ensure that the violation is corrected, and the Authority explained that the violation will be canceled after 12 months if it is not repeated in this period.

All penalties for field violations start with a warning to the facility first and educate the taxpayer. The Authority clarified that the decision does not include non-field violations, such as tax evasion violations, non-filing and late filing of returns, non-payment and late payment of tax dues, and tampering with the filling of tax returns.

The Authority clarified that the decision does not include non-field violations, such as tax evasion violations, non-filing and late filing of returns, in addition to non-payment and late payment of tax dues, and manipulation of tax returns. The Authority invited all taxpayers to review the simplified guidebook on the new classification of violations and penalties, available on its website, which clarifies all violations and their penalties after their reclassification.

The guidebook explains all violations and their penalties after their reclassification.