Tax & Zakat Compliance Lawyers
We handle registration, returns, e-invoicing and assessment objections.
Overview
Zakat and tax compliance is continuous work, not an annual event. E-invoicing, periodic VAT returns, withholding on cross-border payments, and the zakat return each carry their own deadlines and documentary conditions, and a failure in any of them surfaces at audit years later with accumulated penalties.
We work on the legal side of compliance: reviewing how transactions are characterised before they are executed, verifying e-invoicing and deduction documentation requirements, preparing objections to assessments, and representing you before the tax committees, coordinating with your accountants on the numbers.
The value we add is not in the arithmetic but in the characterisation: is the supply taxable or exempt? is the counterparty resident? is the deduction properly documented? These are legal questions, and an error repeats across dozens of returns before it is discovered.
The legal framework
Zakat and tax compliance is governed by the authority's statutes and implementing regulations:
- The VAT Law and its implementing regulations
- The zakat collection regulations and the zakat base
- The Income Tax Law and withholding on non-residents
- E-invoicing requirements and their implementation phases
- Double taxation treaties concluded by the Kingdom
- The General Secretariat of the Tax Committees and objection procedures
Situations we handle
A periodic compliance review
A preventive check of characterisation and documentation years before a formal audit — the cheapest possible intervention.
Preparing for a field audit
Organising documents and identifying weak points before responding, not after the assessment arrives.
Objecting to an assessment
Filed within a short window with documents and legal grounds; fixing the deadline is the first step.
Withholding on foreign payments
Determining the rate and treaty effect before payment rather than after the violation is found.
Implementing e-invoicing
The requirements are technical and legal together, and an invoice missing particulars is rejected even where the transaction is sound.
Costly mistakes we see
- 1
Missing the objection deadline
The assessment becomes final once the period lapses, however wrong it is. The single error that most often removes a company's defence.
- 2
Relying on the accountant for a legal question
Characterisation is a legal question. A return can be arithmetically correct and wholly wrong on characterisation.
- 3
Non-compliant deduction documents
A deduction requires an invoice meeting the prescribed conditions. A formal deficiency defeats it even where the transaction was genuine.
- 4
Ignoring withholding on foreign payments
The obligation sits with the payer, and discovery at audit means the tax and the penalty together.
How the procedure runs, step by step
ZATCA compliance is measured by daily process, not by the annual return. A non-conforming e-invoice is a breach independent of any tax shortfall.
- 1
Identify the applicable obligations
VAT, zakat, withholding tax, and e-invoicing across both phases. Each has its own registration and deadlines, and conflating them is the most common way well-intentioned entities incur fines.
- 2
Register and correct the data
We verify the registration, the activity and the tax periods. Registration on a period that does not suit the revenue scale creates a needless monthly administrative burden.
- 3
Implement e-invoicing
Integration with the Fatoora platform and its technical requirements: encoding, stamping and linkage. Entities usually fail on the technical integration rather than the invoice itself, and the fix is technical under legal supervision.
- 4
Prepare and reconcile the returns
We reconcile the return against the ledgers and invoices before filing. A discrepancy between return and books is the first thing that triggers an audit, and the audit is what produces a deemed assessment.
- 5
Prepare for audit and objection
We keep an audit-ready document file and track the objection deadlines for any assessment. Preparing in advance cuts an audit from months to weeks and prevents a deemed assessment.
Documents we will ask you for
- The tax registration and zakat certificates
- Returns filed for the last three years
- Financial statements and accounting ledgers
- A sample of the invoices currently issued
- Details of the invoicing system in use
- Any earlier assessment or notice from the Authority
Fees and timelines
Preventive reviews are offered at a fixed fee per scope. Objection and litigation files are priced by stage: assessment review, objection, then advocacy before the committees. Ongoing support is available on an annual arrangement.
On timing: a preventive review takes one to three weeks. Preparing an objection takes days, because the window itself is short. Determination and proceedings before the committees run for months.
Common questions
When must we register for VAT?
On reaching the mandatory registration threshold of taxable revenue, with voluntary registration available at a lower level. Continuing unregistered after crossing the threshold creates a retrospective liability plus penalties.
What is the deadline to object to an assessment?
Short and set by the regulations, running from notification. Missing it makes the assessment final and unappealable, so the first thing we do on receiving any assessment is fix the statutory date.
What are the e-invoicing requirements?
Technical and regulatory requirements covering invoice format, particulars and integration with the system according to the phase applicable to your business. A non-compliant invoice is rejected as a deduction document.
What is the difference between zakat and income tax?
Zakat applies to entities owned by Saudi and GCC persons on the zakat base; income tax applies to the non-GCC ownership share. Mixed entities are subject to both in proportion to ownership.
What is our obligation when paying a foreign supplier?
An obligation to withhold and remit a percentage may arise, varying with the nature of the payment and any applicable treaty. Both the liability and the penalty sit with the payer.
Can penalties be reduced?
Initiatives or bases for reduction may be available in defined circumstances depending on the violation and when it is remedied. Correcting voluntarily before discovery is always the stronger position.
How do we prepare for a field audit?
By organising documents, identifying weak points in advance, and preparing a documented explanation for each likely item. An organised response within the deadlines reduces the assessment; inconsistency widens it.
Will you represent us before the committees?
Yes, from preparing the objection and its submissions through advocacy before the first-instance and appellate committees, coordinating with your accountants on the figures and analysis.
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