Article 47 of the Saudi Value Added Tax Law
المادة 47 من نظام ضريبة القيمة المضافة · الفصل السادس عشر: التهرب الضريبي والعقوبات
The article allows the fine to be doubled for anyone who repeats the same violation within three years of the date the previous penalty decision became final.
Official text (Arabic)
This article has not been amended since the law was issued.
في حال تكرار المخالفة نفسها خلال ثلاث سنوات من تاريخ صيرورة قرار العقوبة السابقة نهائيًّا، تجوز مضاعفة الغرامة في حق المخالف بموجب ذلك القرار.
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 47 explained in plain English
This article deals with the case of repeating a violation, and sets specific conditions for doubling the fine:
- The same violation: that is, repeating the very same violation, not any other violation.
- Within three years: counted from the date the previous penalty decision became final, not from the date the first violation was committed nor the date the decision was issued.
- The rule is discretionary: the article says "the fine may be doubled", so doubling is neither automatic nor required in every case.
The start of the three-year period is thus tied to the date on which the previous penalty decision becomes final, and it is important to know this date precisely when calculating the period.
The article comes after Article 46, which provides that fines do not prejudice collecting the tax, and is followed by Article 48, which explains that the Authority imposes penalties by decision of the Governor or whoever the Board of Directors authorizes, under a classification of violations, taking proportionality into account.
The practical message is that an enterprise punished for a violation should deal with its cause, because repeating it within the period may double the fine. Anyone facing a doubled fine who believes its conditions are not met is advised to consult a lawyer specializing in tax matters.
Practical example
An establishment in Riyadh was fined for not filing its tax return, and the decision became final. Two years later the same violation was repeated. Because the repetition took place within three years of the previous decision becoming final, the fine may be doubled against it.
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 47 of the Saudi Value Added Tax Law
When is the fine doubled under the Value Added Tax Law?
When the same violation is repeated within three years of the date the previous penalty decision became final, and this is discretionary.
Is doubling the fine mandatory?
No. The article provides that the fine may be doubled, so it is not automatic.
From what date are the three years counted?
From the date the previous penalty decision became final.
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 43
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.
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.
- 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
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.