Saudi Arabian Tax and Customs Authority, ZATCA, extended the “Cancellation of Fines and Exemption of Penalties Initiative” until June 30, 2024.
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. Businesses will not be penalized for the aforementioned actions as long as the conditions set for each penalty have been fulfilled.
Originally, this grace period for non-compliance in the mentioned tax matters was declared in June 2022 for 6 months, and it has been extended twice. With this third extension, taxpayers can benefit from the initiative until June 30, 2024. The scope of the fines covered, and other details of the initiative can be found in the guideline published by the ZATCA.
