Saudi Arabia delays the enforcement of e-invoicing fines once again

The ZATCA, Saudi Arabian Tax and Customs Authority, announced yet another extension of the grace period to exempt taxpayers from certain tax-related fines and penalties.

Timeline

The exemption period has been extended until June 30, 2024 and applies to several types of taxes, not only VAT.

Impact

To benefit from this initiative, taxpayers must comply with certain requirements, such as registration in the country’s tax system and submission of the applicable tax returns, among others. The fines that are part of the initiative are as follows:

• Fines for late registration in all tax systems
• Fines for late payment or late submission of returns in all tax systems
• Fines for correcting VAT returns
• Fines for violations related to the application of e-invoicing provisions, such as the failure to issue and maintain invoices electronically and the failure to include a QR code on the e-invoice, among others
• Fines for violations of other general VAT provisions

The ZATCA invites taxpayers to review the details of this initiative by accessing the Simplified Guide on Cancellation Financial of Exemption and Penalties.