The tax return is one of the most important of these obligations, serving as the bridge between your business activities and the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia.
Despite the simplicity of the concept, errors during the preparation or submission of the tax return can lead to penalties, delays, or even detailed audits from the authorities.
In this article, we will explore the concept of the tax return, its types, its main components, common mistakes businesses make, and how the Juleb accounting system can help you avoid these errors and file your returns easily and accurately.
1. What Is a Tax Return?
A tax return is a periodic financial report submitted by establishments to the Zakat, Tax and Customs Authority (ZATCA). It details revenues, expenses, and the taxes due on the business activity within a specific period.
This report helps determine the amount of VAT, income tax, or any other applicable taxes that the establishment must pay. Through this return, the authority ensures that businesses comply with tax regulations and pay the correct dues on time.
2. Types of Tax Returns
The type of tax return depends on the nature of the business activity, but the most common ones in Saudi Arabia include:
1. VAT Return
The most common return for companies, submitted monthly or quarterly depending on revenue size. It includes details of taxable sales, taxable purchases, and the difference representing the tax due or refundable.
2. Income Tax Return
Filed annually by foreign companies or multinational entities operating in Saudi Arabia. It aims to determine the taxable net income based on yearly profits.
3. Zakat Return
Submitted by Saudi or GCC-owned establishments and is calculated based on capital value and business activity.
3. Components of a Tax Return
A tax return is not just a number you enter on ZATCA’s platform—it includes precise details such as:
Basic business information (trade name, tax registration number, activity, financial period)
Total domestic sales and exports
Tax due on sales
Tax paid on purchases
The final amount payable or refundable
Amended returns if previous data was corrected
All of these details require high accuracy and clear documentation to avoid inconsistencies or violations.
4. When Should the Tax Return Be Filed?
ZATCA sets specific deadlines for filing tax returns:
Monthly: For establishments with annual revenues exceeding SAR 40 million
Quarterly: For establishments with revenues below SAR 40 million
The return and any payable amount must be submitted within 30 days from the end of the tax period.
Delayed filing or payment can lead to financial penalties of up to 25% of the tax due.
5. Common Tax Return Mistakes
Even though the process seems simple, many companies fall into costly mistakes. The most common include:
1. Entering inaccurate sales or purchase data
Manual entry increases the risk of errors in values or tax rates.
2. Forgetting to include some invoices
Missing sales or purchase invoices for a period leads to incomplete returns.
3. Using incorrect tax rates
Some goods and services have different tax rates (5%, 15%, or 0%). Using the wrong rate can cause return rejection or penalties.
4. Filing the return late
Missing deadlines is one of the most common causes of fines.
5. Mismatched accounting records and e-invoices
The authority relies on the e-invoicing system for verification; inconsistency triggers violations.
6. Errors in amended returns
Submitting inaccurate amendments without justification triggers audits.
6. How to Avoid Errors When Filing the Tax Return
Avoiding mistakes not only requires caution but also organization and technology. Here are essential tips:
1. Use a reliable accounting system
Like Juleb Accounting, which links sales, e-invoices, and purchases on a single platform to ensure precise data entry.
2. Verify invoices before submission
Check each invoice for the correct tax rate and the supplier’s/ customer’s tax registration number.
3. Use automated reports
Instead of manual spreadsheets, use system-generated tax reports to avoid calculation errors.
4. Track submission deadlines
Set automatic reminders inside the system for filing and payment dates.
5. Consult a tax expert
A certified accountant ensures compliance and reviews data before submission.
6. Use ZATCA integration
Juleb is fully integrated with ZATCA, ensuring that returns follow the required format and are submitted accurately and quickly.
7. How Juleb Helps You Manage Tax Returns Efficiently
Juleb is not just an accounting program; it’s a comprehensive financial platform designed to meet the needs of businesses in Saudi Arabia and the GCC.
It simplifies everything related to taxes and accounting with smart, user-friendly tools. Key features include:
Automatic tax calculation on every invoice
Ready-made tax return reports generated instantly
Direct integration with e-invoicing per ZATCA standards
Accurate analysis of revenue and expenses via smart dashboards
Automatic reminders for filing and payment deadlines
Easy review and modification of previous returns
Local expert support for tax and accounting guidance
Getting Started with Juleb
Book your free demo on Juleb’s official website
Set up your business data in minutes
Import existing invoices and sales
Start preparing your tax return easily and without errors
Get instant support whenever needed
Tax Returns Don’t Have to Be a Burden
Preparing a tax return may seem complex, but with the right tools, it becomes simple and efficient. Juleb gives you confidence that your data is accurate, your reports are compliant, and your business always meets Saudi regulations.
✅ Book Your Free Demo Now
Try Juleb Accounting System and see how it simplifies tax return filing making it easier, more accurate, and faster. Join hundreds of businesses that chose Juleb to streamline operations, save time, and avoid errors and penalties.
Cloud-based and secure
Integrated with ZATCA and e-invoicing
Automated tax return reports
Continuous local support
Conclusion
A tax return is a legal obligation, but it doesn’t need to be stressful. With Juleb Accounting, you can manage taxes confidently, achieve full compliance, and avoid penalties all through one fast, easy platform.
