ZATCA administers Zakat, VAT, excise and customs, and runs the Fatoorah e-invoicing programme. We handle registration, returns and Phase-2 integration on your behalf.
What businesses do with ZATCA
The Zakat, Tax and Customs Authority (ZATCA) is the government authority for zakat, tax and customs; Innovant is an independent consultancy and is not part of ZATCA. For most businesses the relationship covers four areas:
- Registration: a zakat or tax file once the commercial registration is issued, and VAT registration when the business meets the conditions in the VAT regulations.
- Returns and payments: zakat or income tax returns, VAT returns, withholding tax on payments to non-residents, and excise tax on excise goods, each on the schedule ZATCA sets.
- E-invoicing: issuing invoices from compliant systems and, once ZATCA notifies the business, integrating those systems with the FATOORA platform.
- Customs: import and export declarations, duties and clearance at ports.
How access usually works
The business manages its file through ZATCA’s online portal, using an account linked to its commercial registration. Where the portal allows, the owner can authorise staff or an external accountant to act for the business, so access should be reviewed whenever people change roles.
Common issues
Late returns, VAT returns that do not reconcile with the invoices in the accounting system, invoices missing required fields, and a zakat certificate that expires just when a tender or a government payment needs it. Penalties are set in the relevant regulations, so check them on ZATCA’s website rather than relying on summaries. Innovant can help review your invoices against the e-invoicing requirements before integration.
Frequently asked questions
What is the Zakat, Tax and Customs Authority?
It is the Saudi government authority that assesses and collects zakat and taxes, administers customs, and runs the FATOORA e-invoicing platform.
When does a business need to register for VAT?
It depends on the value of your taxable supplies compared with the thresholds in the VAT regulations. The thresholds can change, so check the current figures on ZATCA’s official website.
How do I get a zakat certificate?
It is requested through the ZATCA portal once the business has filed its returns and settled what is due. Government bodies and large clients often ask for a valid certificate.
What is Phase 2 of e-invoicing?
It is the integration phase, in which invoicing systems connect to the FATOORA platform. ZATCA notifies businesses in groups, and each business must be ready by the date given in its own notification.
