I paid VAT late — how is the penalty calculated?

The late-payment penalty is calculated as an annual rate on the outstanding unpaid balance, non-compounding (so it's not interest on interest), but it keeps accruing for every day the payment is delayed. That means the longer you wait, the higher the real cost, even if the return itself was filed on time.

This makes separating «filing the return» from «paying what's due» a common and costly mistake — you can file on time, pay late, and still incur a penalty. At RASEEKH, we track both together, not just the filing.