Bookkeeping for VAT in Saudi Arabia - FAQs

How long should I maintain my tax records?

VAT taxpayers must maintain relevant records for a minimum of 6 years after each tax period, in case of audit.

For capital assets, businesses must maintain records for the following adjustment period:

• Tangible and intangible assets - 6 years
• Immovable assets like real estate - 10 years

In addition, you should maintain records for 5 years from the date of purchase, resulting in a total of 11-15 years.

Should I maintain records for my capital assets?

Yes. For capital assets, businesses must maintain records for the following adjustment period:

• Tangible and intangible assets - 6 years
• Immovable assets like real estate - 10 years Apart from this, businesses should also maintain records for an additional 5 years from the date of purchase, resulting in a total of 11-15 years.

How do I store VAT records?

VAT records must be stored inside the KSA. The documents can be:

• Physical documents stored inside the KSA.
• Electronic documents where the physical server is located:
  • inside the KSA or;
  • outside the KSA with a terminal inside the KSA through which data can be accessed.

For non-resident taxpayers, the designated tax representative is responsible for maintaining the records according to the above principles.

Multinational companies that maintain records outside the KSA must have a terminal inside the KSA where their KSA-related VAT records are accessible.

How should non-resident tax payers and foreign companies store their VAT records?

Non-resident taxpayers need to have a designated tax representative in KSA who is responsible for maintaining the taxpayer’s VAT records. These records can be:

• Physical documents stored inside the KSA.
• Electronic documents where the physical server is located:
  • inside the KSA or;
  • outside the KSA with a terminal inside the KSA through which data can be accessed.  

Multinational companies that maintain records outside the KSA must have a terminal inside the KSA where their KSA-related VAT records are accessible.

What are the records that I need to submit in case of an audit?

You should submit all records related to the calculation of VAT in the case of an audit. The records will include VAT returns, invoices and other transaction records.

What is a VAT account?

A business’ VAT account is its ongoing balance with the ZATCA. Each business’ VAT account will show all tax debts and credits paid, used or accumulated across all tax periods.