The Saudi Arabian Tax and Customs Authority, ZATCA, has launched a “Cancellation of Fines and Exemption of Penalties initiative” for 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.
ZATCA has now recently announced the 6 months extension of the initiative on 30 November 2022. Taxpayers can benefit from this initiative until 31 May 2023. This initiative means that businesses will not be penalized for actions mentioned above as long as the conditions that been set for each penalty are fulfilled by the taxpayer. The scope of the fines covered, and other details of the initiative can be found in the guideline published by the Authority.
