Saudi Arabia — ZATCA VAT Return (Monthly / Quarterly)

Confirm the client is VAT-registered with ZATCA, establish the filing period and frequency, and collect the VAT TIN and Commercial Registration (CR) number. Mandatory registration applies once annual taxable supplies exceed SAR 375,000; voluntary registration is available from SAR 187,500. Monthly filing applies where turnover exceeds SAR 40,000,000; all others file quarterly. The deadline is the last day of the month following the end of the tax period.

Gather the bank statement for the full period, sales e-invoices from the FATOORA system, purchase e-invoices for input tax claims above SAR 2,000, customs declarations for imported goods, and the prior-period VAT return for any excess input tax brought forward. Phase 1 e-invoicing (compliant generation) has been mandatory since 4 December 2021; Phase 2 (FATOORA integration) applies on a rolling-wave basis — confirm which wave the client is assigned to.

Classify every transaction against the ZATCA return fields: standard-rated domestic sales (Fields 1/2, 15%), zero-rated exports outside the GCC (Field 6), zero-rated domestic supplies (qualifying medicines, investment metals — Field 5), exempt supplies (residential rental, margin-based financial services, life insurance — Field 7), reverse charge on non-resident services (Fields 12/13 output + Field 9 input), goods imports cleared at customs (Fields 10/11), and standard-rated purchases (Fields 8/9). Apply blocked-input rules under IR Article 49: motor vehicles (Art. 49(3)), entertainment and hospitality (Art. 49(4)), and employee personal benefits (Art. 49(5)) are irrecoverable. Calculate VAT from gross amounts using Net = Gross ÷ 1.15.

Aggregate classified transactions into the ZATCA return field totals. Compute Field 18 (total output VAT = Field 2 + Field 13), Field 19 (total input VAT = Field 9 + Field 11), and Field 20 (net VAT = Field 18 minus Field 19). Where Field 20 is positive, VAT is payable to ZATCA; where negative, record as excess input tax for carry-forward or refund claim. Produce an Excel working paper with a Transactions sheet and a Field Summary sheet. Run the mandatory recalc script before finalising.

Verify that all sales invoices issued during the period comply with ZATCA e-invoicing requirements. Phase 1 (compliant generation and storage of e-invoices) has been mandatory since 4 December 2021. Phase 2 (real-time integration with the FATOORA platform) applies on a rolling-wave basis by revenue band — confirm the client's wave assignment and integration status. All standard-rated and zero-rated invoices must include the ZATCA QR code (TLV-encoded), the 15-digit TIN, and the tax category code (S for standard, O for out-of-scope). Credit notes (type code 381) and debit notes (type code 383) must reference the original invoice UUID.

Log into the ZATCA portal (zatca.gov.sa) and submit the VAT return electronically by the deadline (last day of the following month). Pay any VAT due via SADAD or another ZATCA-approved channel within the same deadline. If the return shows excess input tax, elect to carry forward or submit a refund request with supporting documentation. Note that a current Zakat Certificate is a separate ZATCA obligation (filed within 120 days of fiscal year-end) — flag if it is also due and coordinate so both obligations are met in time for Commercial Registration renewal.