ZATCA & VAT
Tax compliance, handled.
ZATCA (Zakat, Tax and Customs Authority) governs Saudi tax compliance: VAT (15% standard), Zakat (2.5% on Muslim-owned), withholding tax (5% on cross-border payments), and e-invoicing Phase 2 (mandatory since 2024). Penalties for non-compliance are steep — minimum SAR 25,000 per missed filing, escalating with the offense. We handle registration through quarterly filings.
Everything for ZATCA & VAT.
No carve-outs. If it appears below, it's in the fee.
- ZATCA tax registration (within 30 days of CR issuance)
- VAT registration when turnover crosses SAR 375K
- E-invoicing Phase 2 onboarding (XML format, real-time clearance)
- Quarterly VAT return filings (4 returns per year)
- Annual Zakat declaration (if applicable)
- Withholding tax filings on cross-border transactions
- Audit response support
- Refund claims management
From start to live.
Registration
ZATCA portal registration, VAT decision based on turnover forecast.
E-invoicing setup
Phase 2 integration with your accounting system.
Returns
VAT filings within 30 days of quarter-end.
Zakat
Zakat declaration if applicable.
Common questions.
When projected annual turnover exceeds SAR 375,000. You can register voluntarily below this threshold, which is sometimes strategic (e.g., to recover input VAT). We advise based on your forecast.
Real-time invoice clearance with ZATCA. Every invoice must be issued in XML format, signed cryptographically, and validated by ZATCA before delivery to customer. Mandatory for VAT-registered businesses. We integrate with QuickBooks, Xero, Zoho Books, SAP, and others.
Late VAT filing: minimum SAR 1,000-25,000 depending on delay. Wrong invoice: SAR 1,000-50,000. E-invoicing non-compliance: SAR 5,000-50,000 per offense. Penalties stack and authorities are aggressive about enforcement.
Zakat is religious obligation — applies to Muslim-owned shares. Foreign-owned companies typically pay Income Tax (20%) instead of Zakat. Mixed-ownership: pro-rated. We structure correctly at setup to avoid surprises.
VAT: quarterly (4 returns/year). Zakat: annual. Withholding: monthly (when applicable). E-invoicing: real-time (continuous). Sounds like a lot — that's why most clients take our retainer instead of doing it in-house.