Kingdom of Saudi Arabia updates to VAT implementing regulations and e-invoicing
Kingdom of Saudi Arabia ("KSA") Updates to VAT Implementing Regulations and Penalties Related to E-Invoicing
Introduction
The KSA Zakat, Tax and Customs Authority (ZATCA) approved the amendments to the VAT Implementing Regulations and announced the violations and penalties related to the e-invoicing in KSA.
E-invoicing Phase 1 Go-live date:
04 December 2021
Amendments Related to E-Invoicing
The Following Articles of the KSA VAT Implementing Regulations were amended:
Article 53 - Tax Invoices
- Grants Power to ZATCA Governor to:
- Suspend/ cancel applications of e-invoicing regulations
- Amend required details on the e-invoices
Article 54 - Credit and Debit Notes
- Allows the issuances of Debit and Credit Notes in cases other than those mentioned in Article 40 of the VAT Implementing Regulations
Article 66 - Record-Keeping Requirements
- Added clauses on Storing of e-invoices and e-notes per the e-invoicing regulations.
Violations and Penalties Related to E-Invoicing
ZATCA announced the following violations and penalties related to e-Invoicing:
|
Violation |
Penalties (SAR) |
|
Non-issuance/ Non-archiving of e-Invoices |
5,000 – 50,000 |
|
Failure to include QR Code in the simplified tax invoices |
Initial Warning. Maximum Penalty – 50,000. |
|
Failure to inform ZATCA of any Malfunction that hinder the issuance of e-Invoices |
|
|
Failure to include the buyer VAT registration number on the e-Invoices, when required |
|
|
Deletion or amendment of e-Invoices after issuance |
10,000 – 50,000 |
Note: The amendment and the announcement of violation and penalties were published in Arabic. The Official English Version is not yet available.
How Crowe can Help
- Assessment of the compliance of invoicing system with the e-invoicing regulations.
- Assistance in the implementation of e-invoicing regulations to avoid violations and penalties.
