Service 05 - Tax & Regulatory
VAT.
Registration, returns, input tax recovery, and Phase 2 e-invoicing integration - the full ZATCA VAT cycle under one roof. Monthly or quarterly, with documentation that survives a field audit.
What we do
End-to-end VAT,
handled.
- VAT registration ZATCA registration for new businesses, group registration structures, voluntary registration below threshold, and deregistration when appropriate.
- Monthly / quarterly returns Preparation, review, and submission of VAT returns - with every box supported by underlying transaction-level evidence.
- Input VAT recovery Maximising legitimate input VAT recovery - including partial exemption calculations and capital goods scheme adjustments where relevant.
- Phase 2 e-invoicing integration Fatoorah integration - connecting your billing system to ZATCA's platform, QR code compliance, XML format validation, clearance and reporting.
- VAT audit support Preparing for and managing ZATCA field audits - document compilation, query responses, and representation with ZATCA auditors.
- VAT advisory Pre-transaction guidance on VAT treatment - contracts, cross-border services, real estate, financial services, supplies of mixed nature.
Why it matters
VAT errors compound monthly.
VAT is not an annual tax - it's a monthly obligation with an immediate paper trail and automated ZATCA cross-checks. A treatment error made in January repeats every month, becomes visible in comparative reporting, and accumulates penalties until caught. Phase 2 e-invoicing has added a real-time dimension: invoices are cleared through ZATCA before they reach the customer, and mistakes show up immediately in the system.
The cost of VAT done badly is not just penalties - it's also the input tax you leave on the table through timid treatment, the supply-chain friction from incorrect invoices, and the audit distraction when ZATCA inevitably asks questions. Done well, VAT is routine and defensible. We treat it as a monthly rhythm, not a periodic crisis.
Our approach
Four phases.
Monthly rhythm, not periodic scramble.
Health check
We review your last 6 returns, transaction samples, and invoice templates. The output is a short report flagging any exposure areas and quick wins for input recovery.
Integrate
Fatoorah / e-invoicing setup, system configuration, and invoice template corrections. Every QR code, every XML schema validated against the current ZATCA specification.
Run
Monthly preparation, review, and submission. Every return reconciled to the GL, every box supported. No scramble, no late filings, no avoidable penalties.
Defend
Direct handling of any ZATCA queries or audits - from first notice through resolution. No handoff, no delay, documentation ready on day one.
Deliverables
What you receive.
VAT returns
Every return filed on time, with box-by-box supporting workings archived and accessible for audit.
Monthly reconciliation pack
VAT-GL reconciliation, output VAT rate mix, input VAT recovery analysis - part of your monthly close.
E-invoicing integration
Fatoorah integration certificate, XML validation logs, QR code compliance check - documented ZATCA-ready state.
Invoice template library
ZATCA-compliant invoice templates for every scenario - domestic, zero-rated, exempt, export, advance payment.
VAT position memo
Annual summary memo for your board covering total VAT throughput, recovery rate, risk areas, and peer comparison.
ZATCA correspondence log
Every ZATCA notice tracked, every response documented - creating a defensible record for the business.
Who this is for
Four profiles we serve best.
VAT-registered businesses
Any Saudi business above the SAR 375,000 threshold requiring monthly or quarterly VAT filings to ZATCA.
Complex input VAT scenarios
Companies with partial exemption, mixed supplies, or capital goods - where recovery rates require careful methodology.
Phase 2 e-invoicing laggards
Businesses that need to integrate with Fatoorah Phase 2 but don't have in-house tech capability to complete it.
Cross-border traders
Importers, exporters, and businesses supplying cross-border services where place-of-supply rules drive VAT treatment.
Regulatory context
The rules we apply.
VAT Law & Implementing Regulations
The Unified VAT Agreement, Saudi VAT Law, and its Implementing Regulations - with every ZATCA circular update tracked and applied to ongoing filings.
E-invoicing regulations
ZATCA's e-invoicing resolution, its XML technical specifications, and the phased rollout of Fatoorah integration - implemented end-to-end.
GCC VAT framework
Cross-border rules within the GCC - particularly place-of-supply rules and the treatment of supplies between GCC countries.
Sector-specific rules
Real estate, financial services, oil & gas, and education - where sector-specific VAT treatments, exemptions, and zero-rating rules apply.
Related insights
From our desks.
Partner notes on Saudi VAT practice - circular updates, Phase 2 e-invoicing checkpoints, common audit findings.
Insights coming soon - a library of technical notes on Saudi VAT practice is in preparation.
VAT on your desk?
Tell us your filing frequency, current system, and any pending ZATCA queries. A senior partner will respond within one working day.
Request a consultation