VAT/E-Invoicing Amnesty in Saudi Arabia: Requirements, Scope & Exceptions (2025)

What Is the VAT/E-Invoicing Amnesty?

ZATCA’s Cancellation of Fines and Exemption of Financial Penalties initiative grants penalty relief to eligible taxpayers that regularise past non-compliance within the amnesty window. Following earlier rounds, the initiative was extended on 27 June 2025 and now runs until 31 December 2025. :contentReference[oaicite:1]{index=1}

Deadline signal: Treat 31 Dec 2025 as a hard stop for clean-up and voluntary disclosures across VAT, e-invoicing, CIT, WHT, RETT and Excise where you meet the qualifying rules. :contentReference[oaicite:2]{index=2}

Covered Taxes & Penalties (Scope)

The initiative spans multiple tax types and specific non-compliances:

• Taxes: VAT, Corporate Income Tax (CIT), Withholding Tax (WHT), Real Estate Transaction Tax (RETT), Excise Tax. :contentReference[oaicite:3]{index=3}
• Penalty types included: late registration, late filing, late payment, VAT return corrections, and violations of VAT field detection and e-invoicing (Article 45 VAT Law). :contentReference[oaicite:4]{index=4}

ZATCA’s simplified guide to the initiative provides further operational detail and examples. :contentReference[oaicite:5]{index=5}

Eligibility & How to Qualify

Typical baseline requirements include:

1. Register with ZATCA for relevant taxes (if not already registered). :contentReference[oaicite:6]{index=6}
2. Submit all outstanding or corrected returns for the covered periods. :contentReference[oaicite:7]{index=7}
3. Pay principal tax that arises (or obtain a ZATCA-approved installment plan). :contentReference[oaicite:8]{index=8}
4. Rectify any e-invoicing breaches (mapping, tags, QR, UUID, archiving) to current standards. :contentReference[oaicite:9]{index=9}

Window covered: Relief now applies through 31 Dec 2025, with conditions around the due dates of the returns (see exceptions below). :contentReference[oaicite:10]{index=10}

Key Exceptions & Non-Qualifying Cases

• Tax evasion violations are never covered. :contentReference[oaicite:11]{index=11}
• Returns due after 30 June 2025 are outside the latest amnesty scope (i.e., fines linked to those returns are not waived). :contentReference[oaicite:12]{index=12}
• Previously paid fines are not refundable; newer clarifications also note exclusions for penalties paid before 1 July 2025. :contentReference[oaicite:13]{index=13}

Always check ZATCA’s current notice and the simplified guide before filing — criteria can be nuanced by tax type and timing. :contentReference[oaicite:14]{index=14}

E-Invoicing (FATOORA): What You Must Fix to Benefit

Because e-invoicing violations fall within the initiative, take these actions to close gaps:

• Ensure Phase 2 (Integration) compliance according to your assigned wave and deadlines; correct schema, QR, cryptographic stamp, UUID, and reportable events. (Recent waves continue to be announced in 2025.) :contentReference[oaicite:15]{index=15}
• Clean up master data (VAT numbers, supplies coding), archiving and hash chaining integrity.
• Remediate backlogs and field-detection findings so that any waived fines don’t recur. :contentReference[oaicite:16]{index=16}

Step-by-Step: Claiming Relief

1. Gap assessment: VAT, e-invoicing, WHT, CIT/BEPS, RETT, Excise — identify open filings, underpayments, schema breaches.
2. Register/Update in ZATCA e-services; confirm correct legal entity and tax types are active. :contentReference[oaicite:17]{index=17}
3. Prepare filings: Submit late or corrected returns; add required attachments and explanations for adjustments. :contentReference[oaicite:18]{index=18}
4. Pay principal tax (or agree an installment plan); track settlement dates to avoid interest beyond the window. :contentReference[oaicite:19]{index=19}
5. Evidence pack: Maintain proof of submission, payments, installment approvals, and e-invoicing remediation logs.
6. Post-amnesty controls: Deploy exception reports (wrong rate, missing VAT ID, duplicate UUIDs) and periodic self-reviews.

Worked Scenarios

1) Late VAT Returns (Due Before 1 July 2025)

A company has unfiled VAT returns for 2023 and Q1-2025. It files all pending returns and pays principal tax during the amnesty.

• Outcome: Late filing/payment fines waived under the initiative. :contentReference[oaicite:20]{index=20}

2) E-Invoicing Schema Breaches (2024–2025)

The business corrects UUID/hash chain gaps and reissues compliant notes where required.

• Outcome: Fines for e-invoicing violations can be waived if remediation is completed in the window and conditions are met. :contentReference[oaicite:21]{index=21}

3) Return Due After 30 June 2025

Q3-2025 VAT return is filed late.

• Outcome: Not eligible — fines tied to returns due after 30 June 2025 are outside the latest amnesty. :contentReference[oaicite:22]{index=22}

4) Intentional Tax Evasion Case

Evidence shows deliberate falsification of invoices.

• Outcome: Excluded — evasion penalties are not covered. :contentReference[oaicite:23]{index=23}

Compliance Checklist for CFOs & Tax Leads

• Confirm which returns were due on/before 30 June 2025 and remain open. :contentReference[oaicite:24]{index=24}
• Run an e-invoicing health check (Phase 2 wave, integration, schema, archiving, tamper-proofing). :contentReference[oaicite:25]{index=25}
• Prepare voluntary disclosures and return corrections for VAT/WHT/CIT/RETT/Excise. :contentReference[oaicite:26]{index=26}
• Arrange installment plans early if cash-flow constrained. :contentReference[oaicite:27]{index=27}
• Document decisions and approvals; keep a central amnesty evidence file aligned to ZATCA’s simplified guide. :contentReference[oaicite:28]{index=28}

FAQ

Does the amnesty refund fines that were already paid?
No — previously paid fines are not refunded; some updates also specify penalties paid before 1 July 2025 are excluded. :contentReference[oaicite:29]{index=29}

Are e-invoicing violations really covered?
Yes — the initiative covers violations related to VAT field detection and e-invoicing (Article 45 VAT Law) when you remediate and meet conditions. :contentReference[oaicite:30]{index=30}

What if I file a return that was due after 30 June 2025?
Fines linked to such returns are outside the current amnesty’s scope. :contentReference[oaicite:31]{index=31}

Is there an official guide?
Yes — ZATCA’s Simplified Guide — Cancellation of Fines and Exemption of Financial Penalties is available for taxpayers (PDF). :contentReference[oaicite:32]{index=32}

SEO Takeaways for Corporate Readers

• Saudi VAT penalty relief 2025 — window through 31 Dec 2025 for eligible returns. :contentReference[oaicite:33]{index=33}
• E-invoicing fines waiver — fix FATOORA breaches to qualify; maintain evidence. :contentReference[oaicite:34]{index=34}
• Exceptions — no coverage for evasion; returns due after 30 Jun 2025 excluded. :contentReference[oaicite:35]{index=35}
• How to qualify — register, file, pay principal or installments, correct e-invoicing. :contentReference[oaicite:36]{index=36}