Saudi Arabian Tax and Customs Authority, ZATCA, extended the “Cancellation of Fines and Exemption of Penalties Initiative” until December 31, 2023.
This initiative covers fines regarding late registration in all tax systems, late payment, late filing of returns fines in all tax systems, and fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other general regulations.
Originally, this grace period for non-compliance in mentioned tax matters was declared in June 2022 for 6 months, and it was extended for 6 months in November 2022.
This initiative means that businesses will not be penalized for the actions mentioned above as long as the conditions set for each penalty have been fulfilled. The scope of the fines covered, and other details of the initiative can be found in the guideline published by the ZATCA.
