TaxSavvySA

Late VAT payment penalty calculation

Paid VAT 40 days late. How much penalty?

The situation

Late payment of VAT carries 5 percent of the unpaid tax for each month or part of a month of delay.

The law

  • Saudi VAT Law penalty provisions: Failure to register SAR 10,000; late payment 5 percent of unpaid tax for each month or part month

What it means for you

40 days is more than one month, so two parts of a month apply. Example: unpaid SAR 30,000 x 5 percent x 2 = SAR 3,000. ZATCA has run penalty waiver initiatives in the past; check if one is active.

What to do

  1. Pay the VAT now.
  2. Check the penalty notice.
  3. Ask about any active waiver.

We can do this for youVAT return filing and payment: quarterly or monthly return, adjustments and credit notes: SAR 1,900

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