The Zakat, Tax and Customs Authority confirmed that people who are not registered for value-added tax are not entitled to impose and collect the tax.
And the authority’s “Ask Zakat” account stated (via Twitter) in response to an inquiry from a citizen in this regard, that “those registered in the value-added tax system are obligated to collect the tax, while people who are not registered in the value-added tax system are not entitled to impose and collect the tax.” .
The Zakat Authority added that everyone who carries out an economic activity is required to register in the value-added tax system, if the annual revenues reach the mandatory limit of (375,000) riyals. As for people whose revenues exceed (187,500) riyals and do not exceed (375,000) riyals, they are eligible for voluntary registration.
The authority indicated that tax evasion is the submission of incorrect, forged or fabricated documents, declarations, records or information, with the intent of evading the payment of the tax due.