Saudi Arabia Extends Grace Period for Tax Penalties

December 2, 2022

The Tax Authority of Saudi Arabia (ZATCA) announced an extended grace period for noncompliance related to e-invoicing and other tax obligations.

‚ÄćTimeline

The extended grace period is now effective from December 1, 2022, to May 31, 2023.

‚ÄćImpact

ZATCA‚Äôs ‚ÄėCancellation of Fines and Exemption of Penalties initiative‚Äô covers e-invoicing related noncompliances among other tax obligations.

 During the grace period, ZATCA will not impose tax penalties for the following noncompliances: 

  • failure to issue and maintain compliantly invoices and notes electronically
  • failure to inform ZATCA of malfunctions that hinder the issuance of e-invoices and notes
  • failure to include the QR code in the e-invoice
  • inclusion of the prohibited functions in the e-invoicing system used to issue and maintain the invoices electronically
  • removal or amendment of the e-invoices and notes after issuance
  • any other violation of the e-invoicing and implementing resolutions

In addition, the grace period covers tax registration, late payment, late filing, VAT return correction, and other general tax regulation-related obligations. Taxpayers should refer to the official Guide for additional details. 

How can Fonoa help?

Invoicing: Issue tax invoices in locally compliant languages and formats, with support for third-party or self-billing. They’re customizable, too. 

Reporting: Report transactions in real-time and keep up with evolving local reporting requirements, all with a single API. Our Reporting tool also offers unprecedented visibility of reported transactions globally. 

‚ÄćGet in touch today to learn more!

Eszter Kovacs
Tax Researcher

Eszter is a Budapest-based Tax Researcher at Fonoa. Previous to her time at Fonoa, she worked as an Associate at the tax law practice group of Baker McKenzie Hungary. Eszter joined Fonoa because she recognizes that the world of taxation is moving towards digitalization, and sees this company as a clear industry leader in that regard.