Saudi Arabia Extends Grace Period For Tax Penalties:


The Tax Authority of Saudi Arabia (ZATCA) announced an extended grace period for noncompliance related to e-invoicing and other tax obligations. The extended grace period is now effective from December 1, 2022, to May 31, 2023. ZATCA’s ‘Cancellation of Fines and Exemption of Penalties initiative’ covers e-invoicing related non compliances among other tax obligations.

During the grace period, ZATCA will not impose tax penalties for the following non compliances:

Failure to issue and maintain compliantly invoices and notes electronically
Failure to inform ZATCA of malfunctions that hinder the issuance of e-invoices and notes
Failure to include the QR code in the e-invoice
Inclusion of the prohibited functions in the e-invoicing system used to issue and maintain the invoices electronically
Removal or amendment of the e-invoices and notes after issuance
Any other violation of the e-invoicing and implementing resolutions
In addition, the grace period covers tax registration, late payment, late filing, VAT return correction, and other general tax regulation-related obligations. Taxpayers should refer to the official Guide for additional details.