The Zakat, Tax, and Customs Authority has begun reissuing classifying violations and penalties related to value-added tax associated with on-site violations resulting from a taxpayer’s failure to comply with their tax duties and obligations, effective as of yesterday, Sunday, January 30, 2022.

All penalties for on-site violations begin with first issuing a warning to the business and educating the taxpayer, with no financial fines imposed for a first-time violation, while financial penalties are imposed only upon repeated commission of the same violation, with a grace period of up to three months from the date the penalty is imposed to ensure the violation is rectified, The Authority clarified that the violation is dismissed after 12 months if it is not repeated during that period.

The Authority clarified that non-field violations are not covered by this decision, such as tax evasion, failure to file tax returns, and late filing of tax returns, as well as violations involving non-payment or late payment of tax liabilities, and violations involving the falsification of tax returns.

The Authority called on all taxpayers to review the simplified guide on the new classification of violations and penalties, available on its website, which details all violations and their corresponding penalties following the reclassification.