In our contemporary world, the Zakat and Tax Authority is an essential partner in building a just and sustainable society. It plays a crucial role in financing public services and achieving sustainable development, as well as collecting taxes and fees in a fair and effective manner and providing the necessary resources to support social programs and infrastructure, in addition to promoting financial justice in society. It also implements customs policies and imposes duties on imported and exported goods. This contributes to protecting local industries and encouraging local investment. It is worth noting that, thanks to its continuous efforts, it provides the necessary financial resources to support public services, which enhances the well-being of society and secures a prosperous future for future generations. So follow this article with us, in which we will talk in some detail about this body so that you can be informed about your situation.
What is the Zakat and Income Authority?
The General Authority for Zakat and Income was established in 1936 AD–1355 AH as a Saudi government body concerned with collecting zakat and regulating matters related to income and taxes. On May 4, 2021 AD, the Saudi Council of Ministers issued a decision to merge the General Authority for Zakat and Income with the General Authority of Customs under the name of the Zakat, Tax, and Customs Authority.
The Authority is now a specialized body that aims to achieve several main objectives, such as: collecting zakat, ensuring its distribution in an effective and fair manner, collecting taxes, in addition to achieving tax justice, providing financial resources to the state to finance public services, developing infrastructure, achieving financial balance, and regulating customs. Also facilitating the movement of foreign trade and protecting the economic interests of the Kingdom.
The role of the Zakat and Income Authority in Saudi society
The Zakat, Tax, and Customs Authority plays a vital and important role in Saudi society and contributes to achieving many main benefits and objectives, the most important of which are the following:
Increased net revenues and effective financial commitment
The authority works to achieve the highest levels of commitment and effective financial planning. This contributes to increasing net revenues and enhancing the financial sustainability of the state.
Transparency and fairness in dealing
The Zakat, Tax, and Customs Authority seeks to provide transparency with regard to zakat, taxes, and customs duties and to treat customers in a fair and coordinated manner, which enhances confidence in the financial system and contributes to creating a sustainable business environment.
Effective management and continuous improvement
In addition to the above, the authority also works to maintain effective management and continuous improvement of its operations, with the aim of achieving efficiency and better meeting the needs of society.
Social Responsibility
The Authority is committed to activating its role in social responsibility by highlighting the efforts it makes and painting a positive image of it, whether internally or externally.
Raising awareness and facilitating business
The Zakat and Tax Authority works to raise the level of awareness among customers and reduce the burden of compliance. This ensures ease of doing business and a positive experience at all stages.
International cooperation and integration
The Authority strengthens the tax and customs system as well as contributes to the international tax and customs agenda. This enhances economic integration and contributes to attracting foreign investments.
Improving logistics and customs services
It also improves logistics, air freight, and express transportation, with the aim of attracting foreign investments and facilitating international trade.
Diversification of financial revenues and economic sustainability
The authority works to diversify financial revenues. To achieve economic sustainability and enhance the economic stability of the Kingdom of Saudi Arabia.
Protecting the environment and achieving balance
The Zakat, Tax, and Customs Authority works to ensure the sustainability of sustainable development and protect the environment by enhancing environmental security and achieving a balance between economic and environmental development.
Enhancing security and quality of life
The authority seeks to provide modern devices and tools to increase security oversight and control. With the aim of preventing the entry of drugs and contraband, protecting community security, and improving the quality of life.
Promoting knowledge and education
The Zakat and Income Authority works to create a vibrant environment that enhances zakat, tax, and customs knowledge and provides financial and legal education to the community in order to address major gaps in capabilities and increase financial awareness.
Improving services for pilgrims and Umrah pilgrims
The Authority works to improve the quality of services provided to the guests of God by providing exceptional services at all stages of the pilgrims’ journey.
The importance of the Zakat and Income Authority for the merchant
The Zakat and Income Authority is an important government body in regulating financial and tax affairs in the country and is of great importance to merchants, especially electronic store owners, as it plays a decisive role in organizing and collecting taxes. It also helps in providing a value-added tax guide for electronic stores, which is an important tool that helps store owners understand and adhere to the laws and regulations related to this tax, and the guide includes instructions on how to register for VAT, submit a tax return, and pay the tax due.
In addition, the Authority is a valuable source of financial information and advice, as traders can benefit from the Authority’s expertise in the field of tax and finance and obtain support and guidance regarding various financial and tax matters.
The importance of the authority with regard to value-added tax
The Zakat, Tax, and Customs Authority is of great importance with regard to value-added tax (VAT) for several reasons, the most important of which are the following:
- Tax implementation: The Zakat and Income Authority works to implement value-added tax laws, including registering taxpayers.
- Tax Administration: The Authority manages the process of submitting tax returns and collecting taxes owed by taxpayers, as well as verification and auditing operations.
- Guiding and educating taxpayers: It also guides and educates taxpayers about value-added tax laws and requirements through its website.
- Developing the tax system: The Authority plays a major role in developing, updating, and improving the value-added tax system based on economic changes and developments.
The importance of the authority for the electronic invoice
The Zakat and Income Authority is an important government body in the Kingdom of Saudi Arabia, as it plays a vital role in organizing and collecting taxes, fees, zakat, and income. The following is its importance for electronic invoices:
Monitoring financial operations
Electronic invoices allow the Zakat and Tax Authority to monitor financial operations in a more effective and accurate manner, as financial details are recorded in specific electronic invoices. This makes it easier for the authority to inspect it and verify its authenticity and compliance with financial and tax laws.
Facilitating communication and information exchange
Electronic invoices can facilitate communication and exchange of information between the Zakat and Tax Authority, individuals, and companies, as electronic invoices can be sent via email or a dedicated electronic system. This reduces the time and effort spent on traditional paper communications and also facilitates the management and processing of financial transactions.
Increase transparency and credibility.
Electronic invoices increase the level of transparency and credibility in financial operations. The authority can accurately track electronic invoices and identify any changes or tampering with financial information. Individuals and companies can also easily verify the authenticity and credibility of electronic invoices by accessing the financial data related to them.
The role of the Qoyod accounting program
The Qoyod program plays a vital role in improving the efficiency of accounting data management and facilitating review, analysis, and review processes, as the program provides a set of advanced technical features, such as:
- The program’s ability to connect directly to the Internet.
- Comprehensiveness of electronic invoices based on the quick response code (QR Code).
- The ability to detect and prevent hacking attempts and unauthorized access.
- The comprehensiveness of the program includes a unique encryption function for each electronic invoice.
- The program is capable of advanced connectivity with external systems.
- Ability to create a unique identification number for each invoice using UUID technology.
- Imposing restrictions on modifying and deleting data after issuing electronic invoices.
- Ability to print a copy of the electronic invoice in PDF or XML formats.
Conclusion
The Zakat and Tax Authority is not just an administrative or legal body, but rather a governmental body that plays a vital role in regulating the economy and promoting sustainable development in our country, as it works to collect taxes, perform customs duties, and administer zakat. Therefore, this contributes to providing the necessary financial resources to support public services and achieving financial balance. Through Zakat management, the authority works to direct part of the wealth to needy groups in society. This enhances social solidarity and achieves economic justice. In addition, the authority works to implement laws and regulations related to taxes and customs in order to ensure fair and equitable financing and maintain economic stability. It is worth noting that good management of the Zakat, Tax, and Customs Authority contributes to building a strong infrastructure. Promoting investments and economic growth.
Are you looking for an opportunity to contribute to community development and promote social justice? Use an accounting program approved by the Zakat and Income Authority, such as the Qoyod program. It is worth noting that it also provides all its clients: electronic invoice systems as well as point-of-sale systems, stores, customers, etc. Which makes it the best integrated accounting program.
After learning what the Zakat and Income Authority are, try Qoyod now for free for 14 days, and we promise you won’t regret it.
