ZATCA expects VAT-registered businesses to keep detailed, structured records of sales, purchases, e-invoices, and related tax data for several years. If those records are scattered across spreadsheets and ad-hoc files, every audit turns into a fire drill; if your ERP can produce standardized reports in seconds, audits feel more like routine checks than crises.
Modern, localized ERPs in Saudi Arabia are designed to mirror the structure of ZATCA’s VAT returns, e‑invoicing rules, and record-keeping requirements so that the data you submit matches the data you can show during an audit.
VAT Return Summary Report
The first report auditors typically look for is the VAT return summary that matches what was filed on the ZATCA portal.
A good ERP should generate a VAT Return Summary that:
- Aligns line-by-line with ZATCA’s VAT return form, including standard-rated sales, zero-rated, exempt supplies, imports, and adjustments.
- Clearly shows output VAT, input VAT, net payable or refundable amount, and the tax period covered.
This report lets you quickly prove that the numbers declared in each VAT return are supported by the underlying transactions in your system, which is a central expectation in any ZATCA review.
Detailed Sales and Output VAT Report
ZATCA wants to see how each line in your VAT return is built up from actual sales invoices. An ERP-focused Sales and Output VAT Report should list every taxable sale for the period with key tax fields
Typically, this report includes:
- Invoice number, date, customer, and tax registration details where applicable.
- Taxable base, VAT rate, VAT amount, and classification (standard-rated, zero-rated, exempt, export)
With this one report, auditors can select any line from the VAT return and immediately drill down to the supporting invoice data, reducing questions and follow-up requests.
Purchase, Expense, and Input VAT Report
Input VAT claims are a frequent focus in audits, because over-claimed input VAT directly reduces VAT payable to ZATCA.
Your ERP should therefore provide an Input VAT Report that:
- Lists all purchase invoices, expense entries, and import documents that generate input VAT.
- Shows supplier details, tax registration, VAT amounts, and flags entries that are non-deductible or partially deductible under local rules.
Having this report ready means you can quickly justify every riyal of input VAT, show how pro-rated or blocked input VAT was handled, and prove that you are not claiming more than allowed.
ZATCA E-Invoicing Compliance Report
Since e-invoicing is mandatory for VAT-registered businesses under ZATCA’s Fatoora mandate, auditors will check not just amounts but also whether invoices comply technically.
A robust ERP integrated with Fatoora can generate an E‑Invoicing Compliance Report, summarizing for each document:
- Invoice or note type (B2B/B2C, standard invoice, credit/debit note), UUID, and internal number.
- Cryptographic stamp status, QR code presence, and clearance/reporting status returned by ZATCA.
This report helps demonstrate that all required invoices were generated electronically, signed correctly, and either cleared or reported as required—closing a major compliance risk area.
Invoice Register with Clearance and Rejection Status
Beyond simple lists of invoices, auditors increasingly expect to see the full lifecycle of your e‑invoices, especially any failures and corrections.
The ERP should provide an Invoice Register that shows:
- All invoices and notes issued in the period with submission timestamps to ZATCA.
- The response from ZATCA for each document (cleared, reported, rejected, or pending) and any corrective actions (cancellations, linked credit notes).
This register reassures auditors that rejected or failed invoices are not being ignored and that the company follows up with corrections in a traceable, controlled way.
Audit Trail and User Activity Report
Under a ZATCA audit, questions often go beyond “what are the numbers?” to “who changed what, and when?”.
An ERP with an Audit Trail Report can show:
- User logins, create/update/delete actions on invoices, credit notes, and VAT-related configurations.
- Timestamps and, where applicable, the old and new values for key tax fields such as VAT rate, tax group, or customer tax registration number.
This type of report demonstrates internal control and reduces suspicion about manual tampering or post-facto edits designed to manipulate VAT outcomes.
Reconciliation and Exception Reports
Finally, an ERP can make you “audit-proof” by helping you catch issues before ZATCA does.
High-value reconciliation reports include:
- Sales vs VAT Return reconciliation, showing that totals in the VAT return match general ledger and invoice registers.
- E‑invoice vs revenue ledger reconciliation, confirming that all revenue recorded in the books has a corresponding e‑invoice where required.
Exception reports can highlight missing tax IDs, negative VAT lines, unusual adjustments, or periods with large jumps in refund claims, all classic red flags in audits.
When these reports are readily available in your ERP, preparing for a ZATCA audit becomes a matter of clicking a few buttons instead of weeks of manual data gathering. In practice, the right reporting pack does not just help you survive audits; it also improves internal visibility, reduces errors, and keeps your VAT compliance aligned with Saudi Arabia’s evolving digital tax ecosystem.
For more details, contact us on +966 56 927 1692