Article 43 of the Saudi Value Added Tax Law
المادة 43 من نظام ضريبة القيمة المضافة · الفصل السادس عشر: التهرب الضريبي والعقوبات
The article punishes anyone who does not pay the tax due within the period set by the Regulations with a fine of 5% of the unpaid tax for each month or part of a month.
Official text (Arabic)
This article has not been amended since the law was issued.
يعاقب كل من لم يسدد الضريبة المستحقة خلال المدة التي تحددها اللائحة بغرامة تعادل (5%) من قيمة الضريبة غير المسددة؛ عن كل شهر أو جزء منه لم تسدد عنه الضريبة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 43 explained in plain English
This article sets the penalty for late payment of the tax, and its elements are:
- The violation: not paying the tax due within the period the Regulations set. The article does not itself set the payment date; it refers it to the Regulations.
- The penalty: a fine equal to 5% of the amount of unpaid tax.
- Method of calculation: the fine is repeated for each month or part of a month for which the tax has not been paid.
The phrase "or part of a month" is important in practice: being late a few days into a new month counts as a whole month for the purposes of the fine. The fine is also calculated on the unpaid tax, so for someone who paid part of the tax, the fine is calculated on the remaining part.
This article differs from Article 42, which punishes an incorrect return or failure to file; a person may file the return correctly and on time but be late in paying, in which case this article applies. It also differs from Article 44, which punishes an unregistered person who issues a tax invoice with a fine of up to SAR 100,000.
An enterprise should therefore pay by the date the Regulations set to avoid the fine accumulating month after month. Anyone who disagrees with the Authority about the calculation of this fine is advised to consult a lawyer specializing in tax matters.
Practical example
An establishment in Jeddah owes tax of SAR 20,000 and was late paying it by two months and ten days after the period the Regulations set. The fine is calculated for three months because part of a month counts as a month, so it is SAR 1,000 for each month, that is, SAR 3,000.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 43 of the Saudi Value Added Tax Law
What is the fine for late payment of VAT?
A fine equal to 5% of the amount of unpaid tax for each month or part of a month for which the tax has not been paid.
Does part of a month count in the late fine?
Yes. The article provides that the fine applies for each month or part of a month.
When must the tax be paid?
The article does not state the date; it refers the period to the Implementing Regulations.
More articles on VAT Fines
- Article 40
The article punishes tax evasion with a fine of not less than the amount of tax due and not more than three times the value of the goods or services involved in the evasion.
يعاقب على التهرب الضريبي بغرامة لا تقل عن قيمة الضريبة المستحقة، ولا تزيد على ثلاثة أمثال قيمة السلع أو الخدمات محل التهرب.
- Article 41
The article punishes anyone who does not apply for registration for value added tax within the periods set by the Regulations with a fine of SAR 10,000.
يعاقب كل من لم يتقدم بطلب التسجيل خلال المدد المحددة في اللائحة بغرامة مقدارها (10.000) عشرة آلاف ريـال.
- Article 42
The article punishes an incorrect or amended return or document that results in less tax than is due with a fine of 50% of the difference, and failure to file the return with a fine of 5% to 25%.
1- يعاقب كل من قدم إلى الهيئة إقراراً ضريبياً خاطئاً، أو قام بتعديل إقرار ضريبي بعد تقديمه، أو قدم أي مستند إلى الهيئة يخص الضريبة المستحقة عليه ونتج عن ذلك خطأ
- Article 44
The article punishes an unregistered person who issues a tax invoice with a fine of up to SAR 100,000, without prejudice to any more severe penalty in another law.
يعاقب غير المسجل في حال قيامه بإصدار فاتورة ضريبية بغرامة لا تتجاوز (100.000) مائة ألف ريـال، وذلك دون الإخلال بأي عقوبة أشد ينص عليها أي نظام آخر.
- Article 45
The article punishes with a fine of up to SAR 50,000 anyone who does not keep invoices and records for the set period, obstructs Authority employees, or violates any other provision of the Law or the Regulations.
يعاقب بغرامة لا تزيد على (50.000) خمسين ألف ريـال، كل من: 1 - لم يلتزم بحفظ الفواتير الضريبية والدفاتر والسجلات والمستندات المحاسبية خلال الفترة المنصوص عليها ف
- Article 46
The article provides that fines under the Value Added Tax Law do not prevent collecting the tax due, and do not prevent any other penalty provided in another law.
1 - لا يخل إيقاع أي من الغرامات المنصوص عليها في النظام باستيفاء الضريبة المستحقة. 2 - لا يخل تطبيق أي من العقوبات المنصوص عليها في النظام بأي عقوبة أخرى ينص عل
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.