Saudi Arabia says 250 organizations violate newly-imposed VAT rule

RIYADH, Jan. 5 (Xinhua) -- Saudi Arabia announced on Friday that 250 organizations violated the Value Added Tax (VAT) rule, which was introduced on Jan. 1, Saudi Press Agency reported.

General Authority of Zakat and Tax enforced the VAT taxation regime as part of various measures to boost economy. It imposes a 5 percent tax on most goods and services to boost revenue.

The VAT applies to a range of items like food, clothes, electronics and gasoline, as well as phone, water and electricity bills, and hotel reservations.

GAZT said that it has received more than 1,4000 complaints and inquiries about the tax and 90 percent of them were tackled.

Saudi Arabia said companies with an annual revenue of more than 270,000 U.S. dollars that fail to register for VAT will be fined 2,700 U.S. dollars. Companies who issue VAT invoices without registering for VAT are subject to fines up to 27,000 U.S. dollars. Enditem