General Guideline

six (66) from the VAT Implementing Regulations; Article twenty-two (22) from the Implementing Regulation of Excise Tax Law; Article 110 of the Implementing Regulations for Zakat Collection. (25)Article fifty-six (56) from the Implementing Regulations of Income Tax Law. (26)Article sixty-six (66) from the VAT Implementing Regulations. (24)Article fifty-six (56) from the Implementing Regulations of Income Tax Law. For VAT purposes, invoices and documents related to supplies connected to the zone shall be retained in accordance with the provisions of the Implementing Regulations of the VAT Law. Taxable persons shall also retain all documents evidencing the location of goods at the time of supply, as well as documents evidencing their movement and placement under, into, or from any customs duty suspension arrangements, including, in particular, customs documents issued in accordance with the provisions and procedures of the Unified Customs Law For customs purposes, the established entities shall electronically keep and maintain all papers, documents, records, correspondence, commercial contracts and documents of any kind, directly or indirectly in connection with customs operations for at least five (5) years from the date of completion of those customs operations and submission of the latter to the relevant officials in ZATCA upon request. For VAT purposes, invoices and documents related to supplies connected to the zone shall be retained in accordance with the provisions of the Implementing Regulations of the VAT Law. Taxable persons shall also retain all documents evidencing the location of goods at the time of supply, as well as documents evidencing their movement and placement under, into, or from any customs duty suspension arrangements, including, in particular, customs documents issued in accordance with the provisions and procedures of the Unified Customs Law It is worth to note that the established entities in the zone shall be obligated to comply with E-Invoicing (electronic invoicing) Regulations issued by the Authority (ZATCA), known that the latter regulations shall apply to supplies made by such established entities in the Zone that are registered with ZATCA. 6.5 Tax and Customs Assessment and Examination, and the Objection Procedures 6.5.1 Tax and Customs Assessment and Examination The established entities shall be subject to the tax assessment, as well as the tax and customs examination and audit that carried out by the Authority in accordance with the tax and customs laws and regulations applicable in the Kingdom and the Zone. Subsequently, the established entities shall comply with those laws and regulations. For more information about tax assessment and examination, please review the given guidelines on examination, assessment, correction, and objection on ZATCA decisions available on ZATCA website Zatca.gov.sa. 6.5.2 Objection Procedures Objections on the Authority (ZATCA) decisions shall be made in accordance with the work rules of the Zakat, Tax and Customs Committees issued by Royal Order No. (25711) dated 08 Rabi’ al-Thani 1445 AH. (Corresponding to October 23, 2023.), also as per any amendments of those work rules and substitutes thereof. 6.6 Penalties for Non-compliance In case of non-compliance with the provisions of the laws and regulations applicable in the Special Integrated Logistics Zone, as well as the Tax Rules and the Investment Regulations, the established entities therein may be subject to penalties such as payment of fines, cancellation of licenses or any other penalty as the competent authority may consider and apply. In addition, any customs violations to customs declarations and other requirements stipulated in relation to the Zone shall be subject to fines, while customs smuggling crimes are subject to more severe penalties and/or imprisonment in accordance with the Common Customs Law. Moreover, the non-compliance with the requirements contained in the laws and regulations applicable in the Kingdom in connection with income tax, VAT, excise tax, real estate transaction tax can result in imposing the penalties mentioned as per the tax laws and regulations. Scan this code to view the last version and all published documents Or visit the website zatca.gov.sa