Saudi Arabia Extends Grace Period for Tax Penalties
The Tax Authority of Saudi Arabia (ZATCA) announced an extended grace period for noncompliance related to e-invoicing and other tax obligations.
The extended grace period is now effective from December 1, 2022, to May 31, 2023.
ZATCA’s ‘Cancellation of Fines and Exemption of Penalties initiative’ 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.
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