Saudi Arabia Extends VAT Penalty Relief Until End of 2025 for Eligible Taxpayers

• Saudi Arabia extends VAT penalty relief until 31 December 2025
• ZATCA announced the extension on 27 June 2025
• Eligible taxpayers have an additional six months to comply without penalties
• Grace period runs from 1 July 2025 to 31 December 2025
• To benefit, taxpayers must be registered for VAT, file outstanding returns, and pay due taxes
• Instalment options are available for taxpayers
• Tax evasion, penalties paid before the grace period, and late submissions after 30 June 2025 are excluded from relief
• Opportunity for businesses to update filings without financial penalties
• Urgency for businesses to comply with grace period conditions

Source: avalara.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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