ZATCA has invited taxpayers subject to VAT regulations to take advantage of the “cancellation of fines and exemption from financial penalties” initiative, which has been extended for an additional period of 6 months starting November 2022. The initiative period will end on May 31, 2023.
The “cancellation of fines and exemption from financial penalties” initiative exempts taxpayers from fines and penalties induced by late registration in all taxation systems, late payment fees, fines on delay in declaration submission, fines for correcting the declaration for VAT, and fines for field control violations related to the application of e-invoicing, and general provisions.
Further, it was added that to take advantage of the “cancellation of fines and exemption from financial penalties” initiative,
- The taxpayer must be registered in the tax system.
- All returns must be submitted to the authority.
- The entire principal of the tax debt related to the due tax returns shall be paid.
- Or a request for installments shall be submitted to authorities during the validity of the initiative.
It must be noted that the initiative does not include fines related to tax evasion violations and fines that were paid before the effective date of this initiative.
A simplified guide has been provided for further details on the initiative on the ZATCA website.