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Get the discount nowAre you worried about ZATCA fines? Do you avoid filing tax returns for fear of costly mistakes? The truth is, many accountants and business owners repeatedly make errors when preparing and filing tax and zakat returns—errors that often lead directly to financial penalties or even legal issues.
In this article, we’ll review the 10 most common mistakes in tax and zakat returns and how to avoid them easily. You’ll learn how to protect yourself or your company from fines and submit accurate returns that comply with the Zakat, Tax and Customs Authority (ZATCA) requirements.
One of the most common mistakes is miscalculating VAT, whether by:
Not applying the correct rate (15%).
Entering gross amounts instead of net amounts.
Forgetting to add VAT on certain invoices.
These mistakes can overstate or understate the tax due, exposing you to scrutiny and fines.
Practical tip: Be sure to review every invoice and reconcile it with contracts and official documents.
With mandatory e-invoicing (Fatoorah), some fall into mistakes such as:
Entering inaccurate data (e.g., the tax number).
Using formats incompatible with ZATCA systems.
Issuing invoices with missing data.
A common mistake is not clearly distinguishing between zakatable assets and exempt items.
Example: Some accountants include fixed assets such as buildings and vehicles in the zakat base, even though they are not subject to zakat.
Tip: Refer to the ZATCA guide to classify assets accurately.
Late filing = immediate fine.
A delay of just one day can incur a fine of up to 5% of the tax due.
Repeated delays increase the percentage up to 25%.
Solution: Set a recurring reminder in your calendar two weeks before the deadline.
One major cause of fines is submitting an incomplete return.
Make sure to attach invoices, contracts, and bank statements.
Any omission may be interpreted as withholding information.
A final review is essential.
Ask a colleague or finance manager to review the return.
Use Excel tools or ERP systems to generate automated audit reports.
Simple steps:
Determine the net amount of the good or service.
Apply the 15% rate.
Add the VAT to the total amount.
Example: Invoice for SAR 1,000 → VAT SAR 150 → Total SAR 1,150.
Common mistakes include:
Claiming ineligible amounts.
Lacking supporting documentation.
Confusing supplier discounts with tax credits.
Solution: Don’t guess. Every deduction must be formally documented.
Systems such as SAP, Odoo, and Zoho Books help you:
Capture invoices automatically.
Validate figures.
Issue accurate reports.
Theoretical knowledge alone isn’t enough.
An accountant proficient in modern systems can reduce the error rate by 80%.
You now know the most common mistakes and how to avoid them—but knowledge alone isn’t sufficient. You need hands-on experience and practical exercises based on real scenarios.
That’s why we at Bateel Al-Itqan Training Center designed our “Applied Zakat and Tax Program.”
This program equips you with practical tools and direct experience to submit accurate, error-free returns.
Don’t wait until you get fined!
Join the Applied Zakat and Tax Program now and start your journey toward accurate, compliant returns—without penalties.
The most common mistakes in tax and zakat returns.
How to avoid ZATCA fines.
The importance of review and modern technologies.
With this knowledge, you can file your returns with confidence and accuracy and avoid any fines or legal issues.
What fines does ZATCA impose for late tax returns?
Fines range from 5% to 25% of the tax due, depending on the length of the delay.
How can I ensure my zakat return is correct?
Review all figures, ensure data entry is accurate, and attach all required documents.
What benefits does the Applied Zakat and Tax Program offer?
Hands-on training in preparing returns.
Real-world scenario applications.
A significant reduction in the likelihood of fines.
