Zakat, Tax & Customs Authority (ZATCA) revealed that the implementation of the linking and integration phase for e-invoicing will start on 1 January 2023, with the establishments that were selected within the first group. They emphasise that the establishments included in the same group were identified based on the standard of the volume of revenues subject to VAT for the year 2021, for establishments whose revenues exceed 3 billion riyals (approx. EUR 805,000).
As this stage, additional requirements are as follows:
ZATCA announced the re-launch of the initiative to abolish fines and exemption from penalties regarding all tax laws managed by ZATCA, for a period of six months, starting from 1 June 2022 until 30 November 2022, with the aim of mitigating the economic effects of the establishments as a result of the COVID-19 pandemic.
The authority clarified that the fines included in the exemption decision are as follows:
The relief is not granted for penalties related to tax evasion and penalties that had been settled before the issuance date.
The authority has worked to emphasise the importance of the guide in providing more clarifications to the taxpayers and assisting them in understanding the application of VAT in relation to the construction services and the contracting sector in the Kingdom of Saudi Arabia.
The guide illustrates the following points:
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