Article 48 of the Saudi Value Added Tax Law

This article explains how the penalties provided in the Law are imposed, in three paragraphs:

1. Who imposes them and on what basis: the Authority imposes penalties under a classification of violations and a determination of penalties issued by decision of the Board of Directors, which takes into account proportionality between the violation and the penalty. The article does not state this classification itself; it is issued by decision of the Board of Directors.
2. Who issues the decision: a penalty is imposed by decision of the Governor of the Authority, or whoever the Board of Directors authorizes to do so.
3. Publishing the decision: the penalty decision may provide for publishing its operative part at the violator's expense in a local newspaper issued where he resides, or if there is none, in the nearest region to him, or by any other suitable means. This is according to the type of violation, its gravity and its effects, and after the decision becomes final.

Publication is therefore not automatic; it is discretionary, and requires that it be stated in the decision and that the decision become final. For anyone against whom a penalty decision has been issued, Article 49 allows them to object to it as provided by the working rules of the committees for resolving tax violations and disputes. Article 47 also allows doubling the fine where the same violation is repeated within three years.

Anyone who receives a penalty decision should refer to the working rules of the committees for resolving tax violations and disputes, and consult a lawyer specializing in tax or administrative matters.