In brief
Implements the GCC Unified VAT Agreement in the Kingdom: registration, supplies and imports of goods and services, invoices, returns, payment and refunds, and penalties.
Summary of the law
Most common fines
- Failure to apply for registration on time: SAR 10,000 (Article 41).
- Late return: 5%–25% of the tax due; late payment: 5% of the unpaid tax for each month or part of a month (Articles 42 and 43).
- Issuing a tax invoice while unregistered: up to SAR 100,000; failing to keep invoices, books and records: up to SAR 50,000 (Articles 44 and 45).
Tax evasion
- A fine of at least the tax due and up to three times the value of the goods or services concerned (Article 40), which may be doubled for a repeat within three years (Article 47).
- Some articles are amended; see the notes under them in the full Arabic text.
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- Registration
- Invoices and returns
- Payment and refunds
- Evasion and fines
Timeline
- Issued: Royal Decree M/113 · 2/11/1438H
- Amendments: Royal Decree M/52 · 28/4/1441H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .