TaxSavvySA

Notifying ZATCA that the business stopped

Do I have to tell ZATCA when the business stops trading?

The situation

Yes. Taxable persons must notify ZATCA when they cease activity and deregister for VAT where required. Public FAQs list a SAR 1,000 penalty for failing to notify cessation.

The law

  • Saudi VAT Law penalty provisions: Failure to register SAR 10,000; late payment 5 percent of unpaid tax for each month or part month
  • VAT Implementing Regulations Article 15 (nominal supplies): Goods kept after ceasing activity or deregistration are a deemed supply

What it means for you

Notifying stops new obligations from building up. File the final VAT return with any deemed supply on goods kept. If the business was sold as a going concern, follow the transfer notification rules instead.

What to do

  1. File the cessation notice.
  2. Apply for VAT deregistration.
  3. File the final return.

We can do this for youClose a Saudi company: voluntary liquidation, final Zakat or tax return, VAT deregistration and CR cancellation: SAR 15,000

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