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