Not issuing and storing invoices electronically
From SAR 5,000, rising with repetition.
VAT Late Payment and Late Filing Penalty Calculator
Enter the VAT and the filing and payment dates to see each month of delay and what it adds.
Lowest expected penalty
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The last day of the month after the period ends: Q2 2026 is due on 31 July 2026.
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The late payment penalty applies only to the unpaid part.
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Default rates come from Articles 42 and 43 of the VAT Law. Change them if an amendment is issued or a ZATCA notice states another rate.
Late payment penalty
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Late filing penalty
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Total possible penalties—
How was this calculated?
Guidance estimate. ZATCA sets the final penalty in its notice, which you will see in your account on its portal.
ZATCA announced these penalties when the e-invoice generation phase began on 4 December 2021. Fines rise with the type of violation and how often it is repeated; the amounts below are the starting point for a first violation.
Deleting or editing an e-invoice after issuing it
From SAR 10,000. Corrections are made with a credit or debit note, never by editing the invoice.
Simplified tax invoice without a QR code
A warning to the business for a first occurrence.
Tax invoice without the buyer's VAT number
A warning to the business for a first occurrence; this applies to a VAT-registered buyer.
Not telling ZATCA about a fault that stops invoicing
A warning to the business for a first occurrence.
Source: ZATCA's announcement on e-invoicing violation fines (in Arabic). ZATCA sets repeat amounts in the violation decision.
The VAT late payment penalty in Saudi Arabia is 5% of the unpaid tax for each month or part of a month, and the late filing penalty is between 5% and 25% of the tax that should have been declared. Enter the VAT due, the deadline and the dates you filed and paid, and this VAT penalty calculator draws a timeline of every month of delay and what it adds. The second tab lists the e-invoicing violations and the penalty for each.
Short answerEvery month that starts after the deadline, even by one day, adds 5% of the unpaid VAT. A late return is a separate penalty that ZATCA sets between 5% and 25%.
How the VAT late payment penalty is calculated
Article 43 of the VAT Law imposes a penalty equal to 5% of the unpaid tax for each month or part of a month. The first month starts the day after the deadline, and any day that falls into a new month counts that month in full.
Penalty = Unpaid VAT × 5% × Months (part of a month = 1)
Example 1, a late quarterly return: VAT for Q2 2026 is SAR 20,000.00, due on 31 July 2026, and the return was filed and the tax paid on 10 September. The first month ends on 31 August and 10 September falls in the second month, so the late payment penalty is 20,000 × 5% × 2 = 2,000.00. The late filing penalty is between SAR 1,000.00 and SAR 5,000.00.
Example 2, one day late: VAT of SAR 8,400.00 due on 31 October 2026 and paid on 1 November. One day counts as a month, so the penalty is SAR 420.00.
Example 3, part payment: VAT of SAR 50,000.00 due on 31 October 2026, of which SAR 30,000.00 was paid on time with the return and the rest on 15 January 2027. That is three months, and the penalty applies to the balance only: 20,000 × 5% × 3 = 3,000.00. There is no late filing penalty because the return was on time. Enter the amount paid after switching on "Part payment and custom rates".
The published text of Article 43 sets no cap on this penalty, so it keeps growing while the debt is outstanding. Nor does the penalty replace the tax: Article 46 states that penalties do not affect payment of the tax due.
The late filing penalty for a VAT return
A business that does not file its return on time faces a penalty of at least 5% and at most 25% of the tax it should have declared, under paragraph 3 of Article 42. ZATCA decides the rate within that range, so the calculator shows the whole range rather than picking a figure. This penalty is separate from the payment penalty: file on time and pay late, and only the payment penalty applies; be late on both, and both apply.
VAT payment grace period and the return deadline
A business in the Kingdom whose annual supplies exceed SAR 40 million files monthly; everyone else files quarterly. Both deadlines fall on the last day of the month after the period ends, and payment is due on the same day: the June or Q2 2026 return is due on 31 July 2026, as in ZATCA's notice on Q2 returns. There is no grace period after that date; the next day is the first day of the first penalty month.
If you cannot pay in full, pay what you can by the deadline. The penalty is charged on the unpaid amount, so every riyal paid on time shrinks its base. ZATCA also offers an instalment request through its portal, on its own conditions.
The fines cancellation initiative: what it covers and what it does not
ZATCA has extended its initiative to cancel fines and waive financial penalties (announcement in Arabic) to 31 December 2026. It covers penalties for late registration, late payment, late filing and correcting VAT returns, provided the business is registered, files every return due, and pays the principal tax or requests instalments and keeps to them.
It does not cover tax evasion penalties, Article 45 penalties, amounts paid before the initiative began, or penalties tied to returns due after 30 June 2026. That is why the calculator reads your return's deadline and tells you under the result whether it falls before or after that date; ZATCA decides each case.
Penalty for not issuing an invoice, and other e-invoicing violations
Selling without an e-invoice when a business is required to issue one carries a fine starting at SAR 5,000, and deleting or editing an invoice after issuing it carries a fine starting at SAR 10,000. Leaving out the QR code on a simplified invoice or the buyer's VAT number on a tax invoice, or failing to tell ZATCA about a fault that stops invoicing, brings a warning the first time. Details are in the "E-invoicing fines" tab above.
Tax evasion and the other penalties in the VAT Law
| Violation | Penalty | Article |
|---|---|---|
| Tax evasion (forged documents, or moving goods in or out without paying the tax) | At least the tax due and at most three times the value of the goods or services involved | 40 |
| Not registering within the statutory period | SAR 10,000 | 41 |
| An incorrect return, or amending one, in a way that reduces the tax | 50% of the difference between the tax calculated and the tax due | 42 (1) |
| Not filing the return on time | 5% to 25% of the tax to be declared | 42 (3) |
| Not paying the tax on time | 5% of the unpaid amount for each month or part of a month | 43 |
| Issuing a tax invoice while not registered | Up to SAR 100,000 | 44 |
| Not keeping invoices and records, obstructing ZATCA staff, or breaching any other provision | Up to SAR 50,000 | 45 |
Source: the bilingual text of the VAT Law on ZATCA's website. In 2023 ZATCA put draft amendments to these articles out for consultation, so check the current text with ZATCA before relying on any figure.
Common mistakes
- Counting days instead of months: 32 days late after a month-end deadline is two months, not one month and a few days.
- Charging the payment penalty on the full VAT when part of it was paid on time.
- Holding back the return until the money is available, so the filing penalty stacks on the payment penalty. File on time even if payment is late.
- Assuming the waiver initiative covers every return, when it excludes returns due after 30 June 2026.
- Editing an issued e-invoice to fix an error, when the correction belongs in a credit or debit note.
What to do with the result
If the return is not filed yet, file it today on the ZATCA portal, because each day that enters a new month adds another 5% on the unpaid amount. Then pay using the return's SADAD bill number, or request instalments. Keep a PDF of the calculation from the "Download PDF" button to check against ZATCA's notice when it arrives. If the VAT figure itself is in doubt, check the period's numbers with the VAT calculator before filing.
When tax deadlines pile up on the finance team
Most late penalties trace back to a return whose figures were not complete by the end of the month: sales in one register, purchases in an inbox, returns not yet posted. At Microtec we offer an ERP accounting system where sales, purchases, returns and inventory post to the same books as finance, so you know the period's VAT before the last day of the following month, and our solutions are approved by the Zakat, Tax and Customs Authority. Try it on a single tax period.
Frequently asked questions
What is the penalty for paying VAT late in Saudi Arabia?
5% of the unpaid tax for each month or part of a month, under Article 43 of the VAT Law. VAT of SAR 20,000 paid forty days after the deadline carries a SAR 2,000 penalty, because the part of the second month counts as a month.
Is there a grace period after the VAT payment deadline?
There is no statutory grace period after the last day of the month following the period. The next day starts the first penalty month, and a single day late counts as a full month.
Are late VAT penalties being waived in 2026?
ZATCA's fines cancellation initiative runs to 31 December 2026 for returns due up to 30 June 2026, on conditions that include filing every return and paying the principal tax or arranging instalments. It does not cover evasion or Article 45 penalties.
What is the penalty for VAT evasion in Saudi Arabia?
At least the tax due and at most three times the value of the goods or services involved, under Article 40 of the VAT Law. The fines cancellation initiative does not cover it.
What is the penalty for not issuing an e-invoice?
A fine starting at SAR 5,000 for a business required to e-invoice, rising with repeat violations. Deleting or editing an invoice after issuing it carries a fine starting at SAR 10,000.