Does Zoho Books support Saudi cash-basis VAT return reports?

Zoho Books for Saudi Arabia is built around ZATCA VAT and e-invoicing, and its VAT return follows the standard accrual approach. Cash-basis VAT in Saudi Arabia is limited to eligible smaller businesses with ZATCA approval, and support for it in Books may be limited or changed. Check the current Zoho help page and your tax settings before relying on a cash-basis return.

Most VAT-registered businesses in Saudi Arabia account for VAT on an accrual basis, meaning tax is due when the invoice is issued, not when cash is received. ZATCA allows a cash basis only for businesses below a turnover threshold that have applied and been approved. Because it is the exception, accounting software tends to focus on the accrual return first.

In Zoho Books, the Saudi edition produces a VAT return based on the tax on invoices and bills in the period. Look in the tax settings and the VAT return options to see whether a reporting basis can be selected for your organisation. Zoho updates its regional features often, so the current help page is the reliable source.

If cash basis is not available as a setting, you can still prepare the return by running sales and purchase reports filtered by payment date, then calculating the VAT on amounts actually paid and received. Keep that workpaper with your filing. Ask your tax adviser to confirm your approval status and the method, because errors in the VAT basis can lead to penalties.

Written by Flowpeak, a Zoho implementation partner. Zoho pricing and features change, so confirm current details on the official Zoho site. Free checklists | Ask us a question