With less than 16 days remaining to e-invoicing becoming mandatory in Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) have provided further clarity to the applicable penalties which will be enforced for any non-compliance with the e-invoicing regulations.
The penalties are summarized as follows:
|Nature of non-compliance||Penalty|
|Non-issuance of e-invoicing or non-archiving.||From SAR 5-50k|
|Amendment or cancellation of already generated e-invoice other than e-note.||From SAR 10-50k|
|Absence of QR code in simplified invoice.||Warning from ZATCA|
|Not informing ZATCA on system related issues, which prevent the taxpayer from issuing an e-invoice.||Warning from ZATCA|
|Absence of buyer VAT registration number on e-invoice (B2B)||Warning from ZATCA|
Note that the penalty (SAR Up to 50k) is repetitive in nature.
Whilst ZATCA may express some level of lenience during the initial implementation effectiveness period, repetitive violations will attract significant penalties, along with reputational damage, therefore businesses must remain vigilant and compliant.
Further details relating to the penalties (in Arabic), can be found here.
Our tax team remain available to support with your implementation and compliance requirements. To discuss the insights further, contact Adel Daglas, Head of Tax.