VAT Records and Books of Accounts in Saudi Arabia - FAQs

1. How long should you maintain VAT-related documents?

• Six years after each tax period for all VAT-related records in case of an audit
• Six years for tangible and intangible assets
• Ten years plus an additional five years from the date of purchase for immovable assets like real estate

2. Where should you maintain VAT records?

VAT records must be maintained within the Kingdom of Saudi Arabia. The records can be stored in the form of physical documents or they can be stored electronically, where the physical servers are within the kingdom. 

For non-resident taxpayers, their tax representative should maintain VAT records according to these rules. 

Multinational companies that maintain their records in a centralized location outside of KSA, should have a terminal within KSA, where VAT related records can be accessed. 

3. What are the documents required in case of an audit?

Records related to the following must be furnished in case of an audit.

• Records related to VAT calculations
• Documents related to VAT returns, invoices, and other related transactions. 

4. VAT Accounts

VAT accounts of Saudi businesses is the ongoing tax balance it has with ZATCA or The Saudi Arabian Zakat, Tax and Customs Authority. Each VAT account will reflect all the tax debits, and credits paid, used and accumulated over time.