What are the penalties for ZATCA e-invoicing Phase 2?

ZATCA introduced a reclassification decision that modified the penalties for specific violations related to VAT and e-invoicing, taking effect on January 30, 2022.

This adjustment aims to raise awareness of regulatory compliance and provide taxpayers with an opportunity to align themselves with the regulation's requirements.

What are the penalties for ZATCA VAT violations?

As per the reclassification decision, in cases of on-field violations identified by ZATCA officials, a grace period of three months will be provided for rectification. Subsequently, penalties will be enforced as outlined below:

The above-mentioned violations come with a 12-month cutoff period. If a taxpayer repeats these violations after this period, the penalty cycle restarts with a notice, followed by a 1000 SAR penalty for a second-time violation after three months of receiving an alert from a ZATCA official.

What are the penalties for e-invoice phase 2 violations in KSA?

The penalties for e-invoicing-related offenses have also been reclassified as follows:

After a 12-month cutoff period, if a violating taxpayer repeats these offenses, the process begins with a notice, followed by a 1000 SAR penalty for a second-time violation, three months after receiving an alert from the ZATCA official, and so forth.