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Saudi Arabia Imposes Up to 25% VAT Fines for Late August Filings – Act Now

In a stern reminder to businesses across Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) has announced that companies with annual supplies exceeding SAR 40 million ($10.7 million) must submit their July VAT returns by August 31, 2025, to avoid escalating penalties.

Penalty Structure: From 5% to 25%

Businesses failing to meet the deadline face fines starting at 5% of the VAT due, increasing by 5% for each additional 30-day period of delay, up to a maximum of 25%. This tiered penalty system underscores the importance of timely compliance.

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Filing Made Easy with ZATCA

To facilitate compliance, ZATCA encourages businesses to file their returns through its official website or the ZATCA smartphone application. These platforms are designed to streamline the filing process, ensuring that businesses can meet the deadline without complications.

Avoiding Penalties: Proactive Steps

To avoid the hefty fines:

By taking these proactive steps, businesses can safeguard themselves against unnecessary financial burdens.

Need Assistance?

Navigating tax regulations can be challenging. J K offers expert services to assist businesses in Saudi Arabia with their tax filings. Our team ensures that your submissions are accurate and timely, helping you avoid penalties and stay compliant with ZATCA regulations.

Start your business in Saudi Arabia with J K Management Consultancy.

From licensing to setup, we provide expert guidance to help you establish and grow your venture in the Kingdom’s thriving economy. Your success is our priority