What does this tool calculate?
You choose the obligation type and enter the tax due, its due date and the payment or filing date, and the tool calculates the penalty, the amount due with the penalty and how much it increases if you delay another period, with a table of the periods.
The statutory rules
- Late VAT payment: 5% of the unpaid tax for each month or part of a month, so a single day into a new month counts as a month. When the due date is the last day of a month, as VAT due dates are, each month ends on the last day of the following month: due 28 February and paid 31 March is one month.
- Late VAT return filing: a penalty of no less than 5% and no more than 25% of the tax that should have been declared, set by ZATCA; that is why the tool shows both limits.
- Late payment of withholding tax and income tax: 1% of the unpaid tax for each thirty days, with no penalty before thirty full days have passed (Article 68 of the Implementing Regulations of the Income Tax Law).
Worked examples
- VAT: tax of 40,000 SAR due on 28 February 2026 and paid on 10 May 2026 (71 days): 3 months, so the penalty is 40,000 × 5% × 3 = 6,000.00 SAR, the amount due with the penalty is 46,000.00 SAR, and it increases by 2,000.00 SAR for each further month.
- One day: if it was due on 31 March and paid on 1 April, that is a full month: 2,000.00 SAR.
- Withholding tax: tax of 20,000 SAR due on 10 November 2026 and paid on 20 January 2027 (71 days): two complete thirty-day periods, so the penalty is 20,000 × 1% × 2 = 400.00 SAR.
- Late return: a return with tax of 40,000 SAR: the penalty is between 2,000.00 and 10,000.00 SAR.
Limits of the tool
The tool calculates the penalty using the published rule only. It does not calculate other penalties (such as an incorrect return or failure to register), or penalty waiver initiatives when ZATCA announces them. It does not cover Zakat, because we did not find an official text for the rate of its late-payment penalty. The final reference is the official text and your business's account with the competent authority.
Frequently asked questions
What is the penalty for late VAT payment?
5% of the unpaid tax for each month or part of a month until payment.
Is there a penalty for being one day late?
For VAT, yes: one day after the due date counts as a full month. For withholding tax and income tax, there is no penalty before thirty full days have passed.
What is the penalty for late VAT return filing?
Between 5% and 25% of the tax that should have been declared, set by ZATCA. If payment is also late, the late-payment penalty is added.
Content last reviewed: 2026-10-28