Saudi Arabia Proposes Fines of Up to SAR 1,000 for Invoice Violations

A draft regulation published by Saudi Arabia's Ministry of Commerce proposes new fines for a range of retail and sales violations, including penalties of between SAR 200 and SAR 1,000 for failing to issue invoices.

The draft has been published on the Istitlaa Public Survey platform for public consultation ahead of potential approval.

Under the proposal, fines ranging from SAR 200 to SAR 1,000 would also apply to businesses that refuse to sell products, fail to display prices, display notices stating that goods cannot be returned or exchanged, or fail to provide invoices containing a brief description of the product or service. Other violations in the same category include discrepancies between displayed and final selling prices, inaccurate product information, failure to comply with exchange and return policies, maintaining inaccurate business contact information, and removing ministry closure stickers or review notices without approval.

Businesses benefiting from subsidised flour could also face penalties for failing to provide flatbread and rolls through automated or semi-automated bakeries.

A second tier of fines, ranging from SAR 1,000 to SAR 5,000, would apply to offences including wasting subsidised flour, dough or bread beyond permitted levels, possessing goods of unknown origin or carrying misleading information, and failing to open a bank account for the establishment.

For establishments that misuse or improperly repackage subsidised flour, the proposed penalties range from SAR 2,000 to SAR 10,000.

The draft also proposes stricter penalties for overcharging regulated goods or increasing the prices of subsidised products. In those cases, businesses would be fined the difference between the regulated and actual selling price, subject to a minimum penalty of SAR 5,000 and a maximum of SAR 100,000.

Most violations would carry a corrective grace period of up to 14 days before enforcement, while repeat offences would generally result in doubled fines.