Saudi Arabia: New Fines for Non-compliance with E-invoicing Rules

Selin Adler Ring
November 17, 2021

Phase 1 of the e-invoicing system will be live in less than three weeks. While many businesses are still implementing a solution, the Saudi tax authority continues to publish more details on their official webpage.

One of the most recent announcements is about the fines the government will levy in case of non-compliance with the e-invoicing rules for phase 1, and it is currently published only in Arabic.

Details of the announcement

In the announcement, the ZATCA clarifies that the fines will be applied based on the type of violation and the number of times it is repeated. The fines might reach up to SAR 50.000 (approximately USD 13.330) per single violation. Considering e-invoices may fail to comply with different requirements simultaneously, the fines could be even higher per invoice.

The various instances requiring a fine are highlighted as follow:

  • Not issuing and storing invoices electronically
  • Not including a QR code on the simplified invoice
  • Not writing the VAT registration number of the buyer for tax invoices
  • Not notifying the authority of any malfunction that hinders the issuance of electronic invoices
  • Deleting or modifying electronic invoices after their issuance.

What’s next?

The announcement of new fines expresses the determination of the Saudi tax authority to launch the new e-invoicing system on time. Therefore, no delay is expected.

Taxpayers must ensure their compliance before 4 December to avoid facing fines and reputational damage. The success of phase 1 will be a significant parameter for the tax authority to determine the initial scope of phase 2. It has already been communicated by the ZATCA that there will be a roll-out period in which the government will notify taxpayers in the scope six months in advance.

Take Action

Get in touch to discuss your Saudi Arabia tax requirements.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Selin Adler Ring

Selin is Regulatory Counsel at Sovos. Based in Stockholm and originally from Turkey, Selin’s background is in corporate and commercial law, and currently specializes in global e-invoicing compliance. Selin earned a Law degree in her home country and has a master’s degree in Law and Economics. She speaks Russian, Arabic, English and Turkish.
Share this post

North America ShipCompliant
April 17, 2024
3 Reasons Craft Beer Drinkers Want DtC Shipping

While only 11 states and D.C. allow direct-to-consumer (DtC) beer shipping, more than half of Americans ages 21+ (51%) would purchase more craft beer if they were able to have it shipped directly to their home. In this blog, we discuss the top three reasons why craft beer drinkers want beer sent directly to them […]

North America ShipCompliant
April 17, 2024
States Are Looking to Expand DtC Spirits & Beer Availability

2024 is shaping up to be a banner year for legislative efforts related to the direct-to-consumer (DtC) shipping of beverage alcohol. While these proposed laws span a range of legal issues, the primary driver of the bills is expanding access to the DtC market for beer and spirits producers. Currently, 47 states and D.C. permit […]

North America Tax Information Reporting
March 22, 2024
Market Conduct Annual Statement Reminders and More

On the second Wednesday of each month, Sovos experts host a 30-minute webinar, Water Cooler Wednesday, to share the latest updates on statutory filings. In March, Sarah Stubbs shared information about the many filings due after March 1, from Market Conduct Annual Statements to health supplements for P&C and life insurers writing A&H businesses and […]

North America ShipCompliant
March 21, 2024
How Producers Can Build a DtC Shipping Market

Direct-to-consumer (DtC) shipping has become one of the leading sales models for businesses of all sizes and in all markets. The idea of connecting directly with consumers is notably attractive, as it helps brands develop a personal relationship and avoid costly distribution chains. Yet, for all its popularity, DtC is often a hard concept to […]

North America ShipCompliant
March 20, 2024
Key Findings from the 2024 DtC Beer Shipping Report

This March, Sovos ShipCompliant released the fourth annual Direct-to-Consumer Beer Shipping Report in partnership with the Brewers Association. The DtC beer shipping report features exclusive insights on the regulatory state of the direct-to-consumer (DtC) channel, Brewers Association’s perspective and key data from a consumer preferences survey. Let’s take a deeper dive into some of the […]