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ZATCA Requirements

Requirements & Process

ZATCA requirements

For detailed ZATCA requirements

The Zakat, Tax and Customs Authority (ZATCA) announces violations & penalties in relation to e-Invoicing in KSA

Active from 4 December 2021 in the Kingdom of Saudi Arabia.

Violations

Penalties (SAR)

Non-issuance/non-archiving of e-invoices.

5,000-50,000

Not including the QR code in the simplified tax invoices; not informing ZATCA of any malfunctions that hinder the issuance of e-invoices; not including the buyer's VAT registration number on e-invoices (where required).

Initially, a warning to be issued to the taxpayer. The maximum penalty is 50,000.

Deletion or amendment of e-invoices after issuance (other than by credit/debit note).

10,000-50,000

The ZATCA has clarified that all penalties are applied according to the type of violation and the number of times it is repeated. Therefore, first time violations are likely to be treated more modestly, whereas repeat violations are likely to attract larger penalties.

The announcement is available here for your ease of reference.

VAT had the following penalties for the VAT-related violations 

before the reclassification under the new decision issued by the ZATCA

Nature of Offence / Violations

Penalties (SAR)

Failure to maintain books and records

Up to SAR 50,000

Failure to register for the VAT 

SAR 10,000

Submitting false documents with an intent to evade VAT or to reduce its value

At least the amount of the VAT due Up to three times the value of the goods or services

Preventing ZATCA employees from performing their duties

Up to SAR 50,000

Failure to pay the VAT in time

5% of the VAT due for each month or part thereof

Moving goods in or out of the KSA without paying the VAT

At least the amount of the VAT due Up to three times the value of the goods or services

Failure to file VAT return in time

5-25% of the VAT in respect of non-filed return

Collecting VAT without being registered

Up to SAR 100,000

Violation of any other provision of VAT law

Up to SAR 50,000

Incorrect filing of tax return, amending a tax return after submission or filing any VAT document with the authority resulting in a lower amount due

Equal to 50% of the value of the difference between the calculated tax and tax already due

eFaturah edited

eFaturah is ZATCA-compliant, Cloud-hosted  eInvoicing and purchase invoices logging service offered by Futuretech Limited Company, Saudi Arabia.

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