18 GMT+34

Penalty for selling without an invoice in Saudi Arabia BramSoft

The penalty for selling without a tax invoice is one of the important commercial issues in the Kingdom of Saudi Arabia. The necessary measures have been issued to strengthen control over commercial establishments with the aim of preventing illegal practices and tax evasionevasion.

through BramSoft, we will review the penalty for selling without an electronic invoice in the Kingdom of Saudi Arabia and the programs used to activate it for your organization or company.

Penalty for selling without an electronic invoice in Saudi Arabia

Selling without an invoice is considered a legal violation in the Kingdom of Saudi Arabia. The penalty for this violation depends on the value of the amount related to the sale. If the value is less than 10,000 Saudi riyals, the penalty ranges from a fine to imprisonment for a period of up to one year, or both. If the value is more than 10,000 riyals. Saudi Arabia, the penalty amounts to twice the amount and imprisonment for up to five years.

Penalties resulting from selling without an invoice in Saudi Arabia

The penalties for selling without an invoice in Saudi Arabia are as follows:

• Financial finesAny merchant or company who sells without issuing invoices in the Kingdom of Saudi Arabia is subject to paying large financialfines.
• Criminal penalties: The seller and buyer may be exposed to criminal liability, in addition to financial penalties.
• Financial compensation for those affected: The court can impose financial compensation on those responsible for selling without an invoice to the affected buyers.
• Selling without an invoice in Saudi Arabia can lead to legal liability that leads to long and complex judicial procedures, negatively affecting the reputation of the company or individual and causing additional costs.

Electronic invoice and its most important requirements

The electronic invoice is one of the modern technological tools that contribute significantly to the development and improvement of business performance. It is an innovative digital means for issuing and exchanging invoices electronically to replace traditional paper invoices. Implementing this system requires adherence to specific legal requirements and controls, including:

• Register in the electronic invoice systemCompanies and individuals must register in the electronic invoice system approved by the General Authority of Zakat and Tax.

• Obtain a digital certificateA digital certificate for electronic signature must be obtained from a service provider approved by the General Authority of Zakat and Income.

• Correct use of electronic signatureAn approved electronic signature must be used to sign electronic invoices and verify their authenticity and authenticity.

• Commitment to the required information and forms: Electronic invoices must contain information required by regulations, such as details of sales or services and taxes.

• Data securityAppropriate security techniques must be used to ensure the confidentiality and integrity of the data contained in electronic invoices.

• Keep records: Companies must commit to maintaining records and backup copies of electronic invoices in accordance with the requirements of the General Authority of Zakat and Tax.

How to apply the Saudi electronic invoice in your company

BramSoft programs are the most prominent and pioneering solutions in implementing the electronic invoicing system, as it links all the company’s departments and includes:General Accounts Program، Warehouse management software، POS point of sale software، Procurement programme، Sales program.

We will discuss the most important modules used in creating electronic invoices so that you can improve the performance of buying and selling operations in your company or organization in detail now:

Sales system

He presentsSales system Bram has a set of features that make it an ideal solution for managing sales operations effectively, as this system is considered suitable for managing buying and selling operations in your business project, and these features include:

• The ability to create quotes and issue professional invoices: You can easily create quotes and issue accurate invoices approved by the Zakat, Tax and Customs Authority.

• Issuing electronic invoices: You can easily issue electronic invoices that comply with legal and tax standards, saving time and effort.

• Manage orders and shipments: The system makes it easy to track and manage orders and shipments with ease.

• Manage prices, discounts and taxes: The system allows you to adjust and manage prices, apply discounts, and calculate taxes accurately and effectively.

• Detailed reports: The system includes detailed reports on buying and selling transactions, which helps you perform advanced analyzes and make strategic decisions based on accurate data.

• Customer management: You can manage customer data in an advanced way, which helps you provide distinguished services and maintain strong relationships with customers.

• Sales team management: The system enables you to manage the sales team effectively, which contributes to successfully achieving sales goals.

Procurement system

It is consideredProcurement system Provided by BramSoft, the ideal solution for improving purchasing processes and managing suppliers efficiently. Here are some of the most prominent advantages of this system:

• Organizing purchasing operations efficiently: Companies can create purchase orders easily and quickly, reducing administrative procedures and the time required to complete deals.

• aManage suppliers easily: Users can manage all information related to suppliers in one place, making it easier to communicate with them and follow up on contracts and payments.

• Improving the relationship with suppliers: The system provides periodic updates on the status of orders and payments, which strengthens the company’s relationship with suppliers and increases the level of trust between the two sides.

• Ensure accuracy of invoicesBy using the Procurement module in the Odoo system, companies can easily verify the validity of invoices and ensure that they match the orders placed, which reduces billing error and keeps accounts in balance.

• Follow inventory accurately: The system allows companies to accurately track inventory levels, which makes it easier to avoid shortages or excess inventory and enhances asset management.

• Supplier price lists: Makes it easier for businesses to monitor and compare suppliers' price lists to find the best deals and make savings.

• Custom notifications and alerts: Custom notifications and alerts can be configured to ensure no delays in purchases.

• Detailed reports and analyses: The system provides detailed reports and analyzes on purchasing processes and supplier performance, making it easier to make strategic decisions based on data.

Accounts system

It is considered Accounts module Developed by BramSoft, it is an essential part of managing financial accounts in companies and contributes significantly to creating and activating electronic invoices, in addition to the following features:

• Create invoices: Invoices can be easily created, customized and sent to customers.

• Payment management: Payments and payments from customers can be recorded and tracked.

• Expense and revenue management: Expenses and revenues can be recorded and classified to analyze financial performance.

• Financial reports: Allows you to create different financial reports to analyze profits, losses and financial conditions.

• Track the movement of fundsThe movement of funds within the company can be recorded and tracked.

• Reconciliation between accounts: Allows reconciliation between different accounts to ensure balance in financial accounts.

Advantages of subscribing to the BramSoft cloud platform

BramSoft offers many features that make it a distinctive choice for individuals and companies alike. Here are some of its notable features:

• Easy and online accessBramSoft is a cloud system that you can easily access from anywhere over the Internet without having to install additional software on personal devices.
• Versatile integration: The system can provide programmatic interfaces (APIs) for customers who own websites, enabling them to easily and effectively integrate the quote functionality into their websites.
• A complete set of modules: The system provides a comprehensive set of modules that contribute to significantly enhancing business performance, such as:the sales AndAccountingAndHuman Resource ManagementAndStore Management AndPoints of sale (POS).
• A unique monthly subscription model: The system features a monthly subscription model that allows business owners to incur lower costs compared to traditional ERP systems, which facilitates financial management for companies.
• Compliance with government agencies and tax facilities: The platform has certification from the Zakat, Tax and Customs Authority, and thanks to this, it allows companies to recover their money when registering and purchasing from the authority, and provides registration opportunities at reduced prices.
• Adopting the government billing platformBramSoft platform is approved by the Fatawa platform, which provides electronic invoices with high efficiency and reliability.

Do not hesitate, and activate your electronic invoice through BramSoft programs approved by the Zakat, Tax and Customs Authority and also approved by the Fatawa platform. There is a penalty for selling without an invoice within the Kingdom of Saudi Arabia.

Frequently asked questions about the penalty for selling without an invoice

How much is a fine for not giving an invoice?

The fine for not activating the electronic invoice amounts to $5,000 due to not issuing it.

Does the store have the right to refrain from selling?

Not selling any commodity is considered a punishable violation according to the regulations of the Ministry of Commerce and Investment, except in cases where there is a special offer and the number of pieces allowed for each customer has been determined.

Is manual billing prohibited?

The Zakat Department confirmed that it is permissible to use manual invoices to add added tax, provided that the requirements specified in Article 53 of the Executive Regulations are met.

What happens if you don't pay the fine?

Failure to pay a ticket can result in additional consequences, such as additional fees, driver's license suspension, or even property confiscation, and there are other more serious consequences that may result as well. It is always a good idea to consult an attorney before considering filing a fine objection in court.