Short answer: ZATCA has extended its fine waiver initiative through 31 December 2026. Until that date you can settle outstanding penalties, including e-invoicing violations found during field inspections, by paying the principal tax due. There is a catch that most coverage skips: the waiver only reaches penalties tied to returns due up to 30 June 2026, and ZATCA has stated that cutoff is fixed even if the initiative is extended again.
What the initiative actually covers
The Cancellation of Fines and Exemption of Financial Penalties Initiative was extended by a decision of the Minister of Finance for a further six months, running from 1 July 2026 to 31 December 2026. It applies across tax systems, and the categories it covers include:
- Fines for late registration
- Fines for late payment and late filing of returns
- Fines for correcting VAT returns
- Fines for field inspection violations related to the e-invoicing regulations
- Violations of other general VAT provisions
That fourth item is the one that matters if your Fatoora integration is incomplete or your invoices have been going out non-compliant. It is the reason this window is worth acting on rather than reading about.
The catch worth understanding before you plan around it
The waiver covers penalties connected to returns that were due up to 30 June 2026. Anything tied to a return falling due after that date sits outside the initiative.
ZATCA has been explicit that this boundary does not move. If the initiative is extended past 31 December 2026, that future extension will still not reach back to cover penalties on returns due after 30 June 2026. Planning on the assumption that another extension will clean up exposure created in the second half of 2026 is a mistake.
What you have to do to qualify
The exemption is conditional, not automatic. You need to:
- Be registered with ZATCA for tax purposes
- Submit every outstanding return, or correctly declare previously undeclared amounts
- Pay the full principal tax debt arising from those returns, or apply for an installment plan and keep to it
The installment route requires the application to be submitted while the initiative is still in effect, and every installment paid on its due date under the plan ZATCA approves. Missing installments puts you back outside the exemption.
Two exclusions to note: penalties related to tax evasion violations are not covered, and neither are fines you already paid before the initiative took effect.
What the e-invoicing fines actually are
Worth knowing what you are being exempted from, and what returns once the window closes. These are the starting amounts published by ZATCA:
| Violation | Starting point |
|---|---|
| Not issuing electronic invoices | SAR 5,000 |
| Deleting or amending an invoice after it was issued | SAR 10,000 |
| No QR code on a simplified invoice | Warning |
| Missing buyer VAT number on a tax invoice | Warning |
| Not notifying ZATCA of a malfunction that prevents issuing | Warning |
Exact amounts vary by violation type and by how many times it has recurred, so treat these as starting points rather than a complete schedule.
How repeat violations escalate
ZATCA applies a progressive ladder rather than a flat fine. It moves from a warning, to SAR 1,000, then SAR 5,000, then SAR 10,000, reaching up to SAR 40,000 for continued repetition. Repetition is counted within a rolling 12-month window.
The useful corollary: if twelve months pass without repeating a given violation, the count resets and a later occurrence is treated as a first offence again.
Warning first, not fine first
Since 30 January 2022 ZATCA has applied a warning-first principle. When a field inspection turns up an e-invoicing violation for the first time, the business receives a warning and guidance rather than a fine, along with a correction period of roughly 30 to 60 days depending on the violation type.
This is worth stating plainly because a lot of commentary on this topic is written to frighten. The regime is built around getting businesses compliant, not around collecting penalties. The genuine pressure here is the December deadline on the waiver, not an expectation that inspectors are handing out maximum fines on first contact.
What to do in the time remaining
If you are behind on e-invoicing compliance, the sequence is:
- Establish where you actually stand. Are your invoices reaching ZATCA at all? Are they being accepted? A journal that quietly stopped submitting weeks ago is a common and easily missed situation.
- File everything outstanding. The waiver is conditional on having no unfiled returns, so this comes before anything else.
- Fix the technical side. Complete the Fatoora integration properly, in simulation first, and confirm every document type submits successfully.
- Settle or arrange the principal. Pay it, or get an installment plan approved while the initiative is still open.
- Do not leave step 4 until December. An installment application submitted in the final days leaves no room for anything going wrong.
Frequently asked questions
Does the waiver mean I can ignore e-invoicing until January?
No. It covers penalties on past exposure, not future obligations. Invoices you issue tomorrow still have to comply, and penalties tied to returns due after 30 June 2026 are outside the initiative entirely.
Will it be extended again?
It has been extended several times, so another extension is plausible. But ZATCA has stated that the 30 June 2026 boundary stays fixed regardless, so a further extension would not help with anything arising after that date. Treating an extension as a plan is a bad bet.
I have never issued a compliant e-invoice. Is it too late?
No, and this window is precisely when to fix it. Filing outstanding returns and paying the principal is what qualifies you. The technical integration itself is usually a day of work once your business data is clean.
Do I need to apply, or is it automatic?
The conditions have to be met, and if you need an installment plan you have to apply for it during the initiative period. Check the simplified guideline ZATCA publishes for the current procedure.
Where to go next
If the technical side is what is blocking you, start with our step-by-step guide to connecting Odoo to Fatoora. If you are already integrated but invoices are failing, the Odoo ZATCA error guide covers the causes in diagnostic order.
Back to the complete ZATCA requirements guide
Last reviewed July 2026. This content is for general information and does not constitute tax advice. Fine amounts, initiative dates and conditions are set by the Zakat, Tax and Customs Authority and change over time. Verify current details against ZATCA official publications, or consult a licensed tax advisor, before acting.