E-INVOICING PENALTIES FOR NON-COMPLIANCE
- If ZATCA inspectors discover a violation during a field visit in your company, a warning will be issued before facing any penalties. ZATCA aims to raise awareness instead of penalising companies for their first infringement. Your business will then have three months to comply with the law and make any required changes to your systems.
- If noncompliance persists after the initial inspection, you will be subject to a penalty of SAR 1,000. In such cases that your company fails to comply with the requirements and does not make the necessary modifications within three months of receiving the notice, the penalty fee will gradually increase.
Fines for each additional repetition time will be as follows:
- 5,000 SAR for the third time.
- 10,000 SAR for the fourth time.
- 40,000 SAR for the fifth time.
- If the same violation is repeated 12 months after its discovery, it is considered a new violation. The process will begin again starting with a warning without a fine.
| NATURE OF NON-COMPLIANCE | PENALTY |
|---|---|
| Non-issuance of e-invoicing or non-archiving. | From SAR 5-50k |
| Amendment or cancellation of already generated e-invoice other than e-note. | From SAR 10-50k |
| Absence of QR code in the simplified invoice. | Warning from ZATCA |
| Not informing ZATCA on system-related issues which prevent the taxpayer from issuing an e-invoice. | Warning from ZATCA |
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