Saudi VAT Penalty Quick Reference
| Violation | Penalty SAR | Notes |
|---|---|---|
| Late VAT Registration | 10,000 - 50,000 | Increases with duration |
| Late VAT Return Filing | 5% of tax due (per month) | Max 25% of total |
| Late VAT Payment | 5% of unpaid (per month) | Can stack with filing penalty |
| Incorrect Return (non-intentional) | 1,000 - 10,000 | Reduced if self-corrected |
| Incorrect Return (intentional) | 25% - 50% of difference | May lead to criminal charges |
| Failure to Keep Records | 10,000 | 6-year retention required |
| No Tax Invoice | 5,000 - 50,000 | E-invoicing mandated since 2023 |
Exemptions & Reliefs
- Zero-rated goods: medicines, medical devices, investment gold/silver
- Service exports: service consumption outside KSA
- Import VAT reclaim: 15% paid at customs → can be offset
- SME threshold: annual revenue ≤ 375,000 SAR (voluntary registration)
- Voluntary correction: proactively notify ZATCA → up to 50% penalty reduction