On 21/11/1441 HD, corresponding to 12/07/2020 AD, the first appeals chamber for VAT and Selective Goods Interventions and Disputes convened a meeting in Riyadh city to consider the lawsuit filed by a taxpayer against the General Authority for Zakat and Income (ZATCA).

The facts of this lawsuit are the appellant (national ID no. ...) filed a lawsuit that included his objection to the decision of the ZATCA, which had imposed a fine for late registration in the VAT system in the amount of SR10,000. The appellant requested, ‘The cancellation of the VAT registration fine due to my ignorance of registration and not receiving a letter stating the need to register’.

By presenting the statement of claim to the authority, they responded:

1. The decision was based on policy, and whoever claimed otherwise must provide evidence.

2. Paragraph 2 of article 50 of the unified agreement on VAT for the GCC states stated that ‘The mandatory registration limit shall be SR375,000’, as stated in paragraph 9 of article 79 of the executive regulations.