ZATCA Extends Grace Period for E-Invoicing Fines and Penalties in Saudi Arabia

ZATCA has once again extended the period during which taxpayers can avoid fines and penalties. The new grace period will remain in effect until June 30, 2025. To qualify for the exemption, taxpayers must register, submit any outstanding returns, and settle their principal tax debts.

Details of the Extension

On December 29, 2024, the Zakat, Tax and Customs Authority (ZATCA) announced that it had decided to extend the Cancellation of Fines and Penalties initiative until June 30, 2025.

Taxpayers wishing to benefit from the exemption must be registered under the relevant tax laws, submit any previously unfiled returns, and pay all principal tax debts related to those returns. Taxpayers may also request payment plans in installments, and are advised to consult the ZATCA website for additional guidance on the initiative.

There’s more you should know about e-invoicing in Saudi Arabia – learn more about the new and upcoming regulations.