- Saudi Arabia’s ZATCA has intensified audits on VAT, corporate tax, and zakat filings, using risk-based selection and data analytics to identify irregularities.
- Audit triggers include discrepancies in tax returns, unusual profit/loss patterns, large VAT refunds, frequent amendments, related-party transactions, delayed filings, and whistleblower reports.
- ZATCA audits involve reviewing comprehensive financial records, contracts, e-invoicing, and sector-specific documents, with desk, field, and electronic audit types.
- Penalties for non-compliance range from fines to imprisonment; an appeal process is available for contesting assessments.
- Businesses must maintain detailed documentation, prepare for audits, and archive e-invoicing data for at least six years.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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