How to safeguard businesses from ZATCA revised penalties for non compliance with e-invoicing and VAT?
ZATCA revises penalties for non-compliance with VAT and e-invoicing rules in Saudi Arabia. A ZATCA announcement published on its website on 30 January 2022 announced penalties for violations of VAT rules. It is available only in Arabic at this time. The federal government also announced new penalties for non-compliance, taking an educational, cooperative approach to penalties.
What’s the new strategy?
ZATCA will first give a warning to a taxpayer found in violation during a field visit. Instead of penalizing taxpayers for a first violation of the ZATCA, it aims to raise awareness. However, a three-month grace period will be provided to tax payers to adapt their processes.
The taxpayer will receive a fine of 1.000 Riyals, about 267 USD, if noncompliance continues after the first inspection. However. non-compliant taxpayers will gradually face higher penalties if they do not make the changes within three months.
There will be a fine of 5.000 Riyals for each additional repetition, 10.000 Riyals for the fourth and 40.000 Riyals for the fifth. When the same violation is repeated after 12 months, it is considered a new violation, and a warning will be issued without a fine.
Violations of e-invoicing?
The rules of e-invoicing will be enforced according to the new procedure outlined in the announcement. Notice/fine instances are slightly different than initial violations, as follows:
- Failure to send and store invoices electronically;
- No QR code on invoices
- Failure to retain electronic invoices and notes in the format specified
- Failing to alert authorities of any malfunction hindering the issuance of electronic invoices
- Deleting or modifying electronic invoices once they have been issued
- Including any prohibited functions in e-invoicing solutions
- Violation of any other provision of e-invoicing.
What does the future hold?
According to ZATCA, the new approach ensures proportionality between the violation and the penalty assessed to taxpayers and gives taxpayers a chance to comply within a specified timeframe. Since the introduction of both VAT and mandatory e-invoicing in the country was relatively recent, some aspects remain unclear for taxpayers. This initiative will provide businesses with education, and stakeholders may welcome it.
How to safeguard businesses from getting fined?
Implementing e-invoicing software which is compliant with all ZATCA e-invoicing provisions is the best way to safeguard businesses from fines. However, You need to find the best IT Solution Company in KSA, that is aware of all the provisions, and can provide you with a extensive and user-friendly e-invoicing solution to fulfill ZATCA requirements.
What is Absolute Solution’s e-invoicing software Saudi Arabia?
Absolute Solution is one of the best IT Company in Riyadh, with an extensive knowledge of the ZATCA e-invoicing mandate. Since, they are experts in providing the best IT solutions that fulfill all business and legal requirements in Kingdom of Saudi Arabia.
Absolute Solution has taken an initiative to provide businesses in KSA, with an e-invoicing solution that can automate the complete e-invoicing process and fulfill ZATCA requirements. Therefore, They have created the best e-invoicing Software for ZATCA compliance that is very user-friendly, and has a lot of benefits to offer. Read out what benefits you will get from the best e-invoicing software for Saudi Arabia.
Benefits of Absolute Solutions e-invoicing Software:
The e-invoicing software developed by Absolute Solutions offers following benefits:
- Effortless integration of e-invoicing software in your business
- Efficient processing of e-invoices
- Auto billing system
- Smart and secure e-invoicing application
- 100% User-friendly
- Scalable e-invoicing solution to meet future requirements
- Arabic and English Language Support, and
- Comes with 24/7 customer support
Final Suggestion:
The e-invoicing mandate in KSA is in the second and final phase of implementation, with an extended date of 1st January 2023. An early adoption of e-invoicing software Saudi Arabia, is the wise step to get compliant and avoid getting penalized for non-compliance.
However, with all the above-mentioned benefits of the e-invoicing application, Absolute Solution will provide you with complete guidance and support from selecting your subscription model, to integration of application. In addition, you will get a good after sales service throughout the year.
