Article 38 of the Saudi Value Added Tax Law
المادة 38 من نظام ضريبة القيمة المضافة · الفصل الخامس عشر: التفتيش والضبط
The article gives employees named by decision of the Authority's Board of Directors the power to monitor, inspect and record violations of the Law, with their working procedures referred to the Regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
يتولى موظفون - يصدر بتسميتهم قرار من مجلس إدارة الهيئة - الرقابة والتفتيش وضبط مخالفات أحكام النظام، ولهم جميع الصلاحيات اللازمة لأداء مهماتهم. وتحدد اللائحة إجراءات قيامهم بأعمالهم.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 38 explained in plain English
This article specifies who carries out monitoring and inspection of the application of the Value Added Tax Law, and provides the following:
- The task is carried out by employees named by decision of the Authority's Board of Directors. Not every Authority employee is automatically authorized to do so; only one who has been named by a decision.
- Their tasks: monitoring, inspection, and recording violations of the provisions of the Law.
- They have all the powers necessary to carry out their tasks.
- The Regulations specify the procedures for them to do their work, and the article does not detail these procedures.
"The Board of Directors", under Article 1, is the Board of Directors of the Authority, and the Authority is the General Authority of Zakat and Tax.
The violations these employees record may fall under the tax evasion that Article 39 lists, such as submitting incorrect or forged documents, returns or information with intent to evade, or bringing goods or services in or out in violation of the laws without paying the tax. The article comes after Article 37 on joint liability.
Anyone who faces a record of violation or a violation and needs to assess their position is advised to consult a lawyer specializing in tax matters.
Practical example
Two Authority employees came to an electronics store in Khobar to inspect invoices. If they are among the employees named by decision of the Authority's Board of Directors, they have all the powers necessary to carry out their task of monitoring, inspecting and recording violations, in accordance with the procedures the Regulations set.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 38 of the Saudi Value Added Tax Law
Who may inspect businesses for value added tax?
Employees named by decision of the Authority's Board of Directors, who carry out monitoring, inspection and recording of violations.
What powers do inspection employees have?
The article gives them all the powers necessary to carry out their tasks, and refers their working procedures to the Regulations.
Who sets the tax inspection procedures?
The Implementing Regulations set the procedures for these employees to carry out their work.
More articles on Inspection and Objecting to Authority Decisions
- Article 26
The article allows the Authority to make a tax assessment regardless of the return, or a new assessment amending an earlier one, and requires the taxable person to be notified.
1 - للهيئة إجراء تقييم ضريبي للخاضع للضريبة بصرف النظر عن الإقرار الضريبي المقدم منه. 2 - للهيئة إجراء تقييم ضريبي جديد يعدل تقييماً سابقاً لها. 3 - على الهيئة
- Article 45
The article punishes with a fine of up to SAR 50,000 anyone who does not keep invoices and records for the set period, obstructs Authority employees, or violates any other provision of the Law or the Regulations.
يعاقب بغرامة لا تزيد على (50.000) خمسين ألف ريـال، كل من: 1 - لم يلتزم بحفظ الفواتير الضريبية والدفاتر والسجلات والمستندات المحاسبية خلال الفترة المنصوص عليها ف
- Article 48
The article gives the Authority the power to impose penalties under a classification issued by the Board of Directors, by decision of the Governor or whoever the Board authorizes, and allows publishing the operative part of the decision at the violator's expense once it is final.
1 - تتولى الهيئة إيقاع العقوبات المنصوص عليها في النظام وفقاً لتصنيف للمخالفات وتحديد للعقوبات يصدر به قرار من مجلس الإدارة، ويراعى فيه التناسب بين المخالفة وال
- Article 49Amended (1441 AH)
The article allows anyone about whom the Authority has issued a decision to object to it, in accordance with the working rules of the committees for resolving tax violations and disputes.
يجوز لمن صدر في شأنه قرار من الهيئة الاعتراض عليه وفقاً لما تقضي به قواعد عمل لجان الفصل في المخالفات والمنازعات الضريبية
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.