Penalties
- Failure to comply with legal tax obligations exposes a taxable person to a range of financial penalties.
- For a single violation, the highest applicable penalty among those imposed under Article 48 of the law is applied.
- The offender remains subject to the general laws in all matters that do not conflict with the Value Added Tax Law, including the Penal Code, the Code of Civil Procedure, and the rules governing the collection of indirect taxes.
Types of Violations and Applicable Penalties
| Type of Violation | Applicable Penalty |
|---|---|
| 1. Late submission or failure to submit a registration application |
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| 2. Failure to notify the administration of a change in the taxpayer's name, address, activity, or legal form |
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| 3. Late notification or failure to notify the administration of the permanent cessation of business |
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| 4. Late filing or failure to file the periodic return |
A penalty of 5% of the tax due according to the return, or of the profit determined by the tax administration, for each month or part of a month of delay. The penalty may not exceed 100% of the tax due for each return and may not be less than:
|
| 5. Filing an incorrect return |
A penalty of 20% of the difference between the net tax due and the net tax declared, provided that the penalty is not less than:
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| 6. Filing an amended periodic return |
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| 7. Omission of information from a return |
When the omission does not result in additional tax, the following penalties apply:
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| 8. Failure to issue an invoice when issuance is mandatory | 2% of the value of the transaction covered by the invoice. |
| 9. Failure to display the tax number or other required formal information on an invoice | 0.5% of the value of the transaction covered by the invoice. |
| 10. Failure to maintain accounting records and documents |
A penalty equal to 50% of the declared non-net tax, provided that the penalty is not less than:
|
| 11. Obstruction of tax-control procedures |
A penalty equal to 50% of the unpaid tax due, provided that the penalty is not less than:
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| 12. Obstruction of compulsory collection procedures |
A penalty of 5% per month of the tax subject to compulsory collection. The penalty may not exceed the amount of tax to be collected and may not be less than:
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| 13. Issuing an invoice without legal entitlement | Three times the tax shown on the invoice. This penalty applies to persons who are not registered for VAT. |
| 14. Issuing an invoice that does not comply with Article 38 of the law | 25% of the tax due on the transaction covered by the invoice. |
| 15. Failure to remit an amount shown as tax on an invoice or similar document | 1.5% of the tax amount for each month of delay. |
Reference: Law No. 44 dated 11 November 2008 (Tax Procedures Law) .