Riyadh – Mubasher: The Saudi General Authority for Zakat and Tax (GAZT) allowed entities and companies providing goods and services to register for the value-added tax (VAT), as long as their annual revenues from their online presence exceed SAR 375,000, a source said.

ِThe tax regulation specified a financial penalty for tax evasion not exceeding triple the value of goods or services, and not falling below the value of the due tax, Al-Madina newspaper reported, citing the source as saying.

The system set an SAR 10,000 penalty for the entities that fail to apply for registration during the deadline specified in the articles of association, the source added.

The registration will continue until December 2017, and the fines will be applied by the beginning of January 2018.

Companies suffering from losses will not be excluded from the application of the VAT, Hamod Al-Harby, the manager of the VAT project in the GAZT, stated.