Purpose of this procedure:
To generate the tax report from the software and upload it to the Zakat, Tax and Customs Authority (ZATCA) portal in order to comply with regulatory requirements and avoid penalties.
Steps to generate the tax report from the program: #
❶ From the main interface
- Scroll to the bottom of the page.
- Look for the “Reports” menu, then click on it.
❷ Tax Reports
- From the reports list, select “Tax Reports”.
❸ View tax details
- A screen will open displaying two tables:
- Table 1: Shows the sales tax (VAT on Sales) collected from customers.
- Table 2: Shows the VAT on purchases paid to suppliers.
❹ Copying or exporting data
- Copy the figures from the two tables (amount, added taxes, …).
Steps to submit the tax return to the Zakat Authority: #
❶ Log in to the ZATCA portal
- Go to the Zakat, Tax and Customs Authority website: zatca.gov.sa.
- Log in using:
- The unique number of the establishment, or
- Email and password.
❷ Navigate to Tax Returns
- From the home page, select “Indirect Taxes” → “Value Added Tax”.
- Click on “Returns”.
❸ Selecting the tax period
- Using the Filter tool, choose the ready-to-fill-in declaration (Ready-to-fill/Draft).
- Select the required tax period (quarterly or monthly, depending on the size of the establishment).
❹ Filling in the declaration details
- A screen will appear containing fields similar to the tables you extracted from the program:
- Sales Tax: Enter the total tax collected from customers.
- Purchase Tax: Enter the total tax paid to suppliers.
- The system will calculate the net tax due (the difference between them).
❺ Review and Confirm Data
- Review all the numbers you entered.
- Ensure it matches the report generated from the software.
❻ Submission of the Declaration
- Click “Submit”.
- A notification will appear asking you to review the data one last time; then, click “Submit” again.
❼ Acknowledge Receipt
- A confirmation message acknowledging receipt of the declaration will appear.
- You will receive a notification via email and text message.
- You can download a PDF copy of the declaration to save in your files.
⚠️ Important Notices: #
- Ensure the accuracy of the figures: any error in the figures could expose the entity to fines of up to 50% of the tax due.
- Adherence to deadlines: The declaration must be submitted within the specified period (monthly or quarterly); otherwise, penalties will double.
- Data Reconciliation with the “Qawaem” Platform: Ensure that the figures submitted for Zakat purposes match the financial statements filed on the Ministry of Commerce’s “Qawaem” platform to avoid regulatory notifications.
- Save a backup copy: Keep a copy of the submitted report and declaration for review and audit purposes.
💡 Additional tips: #
📌 Using Monthly Reports
- Generate the tax report from the software periodically (monthly or quarterly) to facilitate the filing process at the end of the tax period.
📌 Hiring an accountant
- If the entity is complex or has multiple branches, it is advisable to engage a certified public accountant to review the figures before submission.
📌 Track appointments
- Note down the filing deadlines in your calendar to avoid penalties.
