As part of its ongoing support for the national economy, the Zakat, Tax, and Customs Authority (ZATCA) has launched the Cancellation of Fines Initiative on tax system violations, including those related to e invoicing. This extension, available until the end of 2024, offers a golden opportunity for taxpayers to rectify their status and avoid fines.
In this article, we’ll outline the e invoicing violations covered by the initiative and effective ways to continuously avoid them with EZ Integrated’s solutions.
Cancellation of Fines Initiative: What It Is and How to Benefit from It
The Cancellation of Fines Initiative is an incentive introduced by ZATCA on June 1, 2022, to reduce the financial impact on businesses resulting from the COVID-19 pandemic by exempting tax system subjects from financial penalties.
Recently, ZATCA announced the extension of the Cancellation of Fines Initiative, effective from July 1, 2024, until the end of 2024, encouraging taxpayers under the tax system to quickly take advantage of this extension.
To qualify for the exemption, taxpayers must register in the tax system, submit all declarations required by ZATCA within the specified period, and either settle any outstanding tax liabilities or apply for an installment plan and comply with the agreed-upon schedule.
It is important to note that the Cancellation of Fines Initiative does not cover fines paid before June 1, 2022, nor fines related to tax evasion violations, such as late payment, registration delays, declaration amendments, or field audits.
Read more: Key Differences Between Tax and Simplified Tax Invoices
E Invoicing Violations Covered by the Cancellation of Fines Initiative
The Cancellation of Fines Initiative includes various tax-related violations, such as VAT-related violations associated with e invoicing. These include:
- Failing to issue and store invoices electronically.
- Not storing e invoices and e credit/debit notes in the prescribed format.
- Not including a QR code on the e invoice.
- Failing to notify ZATCA of any issues impeding the issuance of e invoices and notes.
- Deleting or amending e invoices or notes after issuance.
- Including any prohibited functions in the e invoicing system used to issue and store e invoices.
- Violating any other provisions of the e invoicing regulations and related executive decisions.
Additionally, some field audit violations related to e invoicing are covered under the Cancellation of Fines Initiative, such as:
- Failing to issue a tax invoice.
- Omitting any required elements on tax invoices and debit/credit notes.
- Not issuing credit or debit notes or failing to provide them to customers.
- Not storing invoices, records, and accounting documents for the prescribed retention period.
After the Cancellation of Fines Initiative: How to Avoid Future Penalties
Taking advantage of ZATCA’s incentive initiatives, such as the Cancellation of Fines Initiative, is a valuable opportunity for businesses to enhance compliance, update systems, and correct e invoicing violations.
With EZ Integrated e invoicing solutions, companies can avoid fines from the start. Our smart and secure integration technology ensures complete regulatory compliance in e invoicing.
By choosing EZ Integrated solutions, you benefit from fully ZATCA-compliant e invoicing setup, ongoing technical support for smooth, uninterrupted operations, and advanced tools that automate invoice management, safeguard data, and provide accurate monitoring to prevent errors.
Contact EZ Integrated today for expert support in connecting to the e invoicing system. Take advantage of this initiative and begin your journey toward full, sustainable compliance.