E-commerce & Retail Accounting & Tax in Saudi Arabia

Our Saudi e-commerce accounting services are built for businesses selling goods in the KSA market:

• D2C Brands: Brands using platforms like Shopify or the local Salla and Zid, who must ensure their checkout process generates ZATCA-compliant e-invoices.
• Marketplace Sellers: Businesses selling on Noon, Amazon.sa, and other marketplaces, who need to reconcile payouts and manage VAT correctly.
• Omnichannel Retailers: Traditional retailers with physical stores who are expanding into e-commerce and need to integrate their online and offline financial systems.
• International Brands with a KSA Entity: Foreign companies that have established a Saudi LLC to sell directly to local consumers and must comply with all local tax and invoicing laws.

From your very first sale in Saudi Arabia, specialized e-commerce accounting is a legal requirement. It becomes critical when:

• You Make Your First Sale: You are legally required to issue a ZATCA-compliant tax invoice for every transaction. This cannot be a simple PDF; it must be in a specific XML format.
• You Cross the VAT Registration Threshold: Once your turnover exceeds SAR 375,000, you must register for VAT and begin filing quarterly returns.
• You Hold Inventory: Properly accounting for Cost of Goods Sold (COGS) is fundamental to understanding your true profit margin and is required for Zakat/Tax filing.
• You Use Local Payment Gateways: Reconciling payouts from Mada, Tamara, Tabby, and other local payment providers is a complex task essential for accurate financial reporting.

Outsourcing e-commerce accounting is a critical investment in legal compliance. Costs in KSA are based on transaction volume and the complexity of integrations.

• Small Stores / Single Channel: SAR 4,000 - SAR 8,000 per month. This covers ZATCA-compliant bookkeeping, VAT return filing, and reconciliation for one sales channel.
• Growing Brands / Multi-Channel: SAR 8,000 - SAR 18,000 per month. This typically includes management of more complex inventory and reconciliation across multiple platforms and payment gateways.
• Large-Scale Retailers: Custom pricing starting at SAR 18,000+, often involving direct ERP integration and fractional CFO services.

The Saudi e-commerce landscape has severe compliance risks for businesses that are not prepared:

• E-invoicing (Fatoorah) Violations: This is the single biggest risk. Failure to issue a compliant e-invoice for every sale can lead to substantial and immediate penalties from ZATCA.
• VAT Non-Compliance: Failure to register for VAT when required, or filing incorrect returns, can lead to heavy fines and back-taxes.
• Inaccurate COGS and Inventory Accounting: Incorrectly valuing inventory leads to a flawed profit figure, which can result in overpaying Zakat/Tax and is a major red flag during an audit.
• Payment Gateway Reconciliation Errors: Failing to correctly reconcile payouts can mask high refund rates, hidden fees, or fraud, distorting your true financial performance.

The ZATCA e-invoicing system is a complex, technical requirement that is impossible to manage with standard, off-the-shelf accounting software. It requires a specific, ZATCA-approved solution. Most general accountants lack the specific knowledge to handle this, along with the nuances of e-commerce inventory and payment reconciliation.

Outsourcing to YourLegal's e-commerce finance partners provides a compliant-from-day-one solution. We use ZATCA-approved software to ensure every transaction is correctly invoiced and reported. Our team manages your VAT returns, reconciles your payment gateways, and tracks your inventory accurately. This ensures you are always compliant with the authorities, have a clear view of your product-level profitability, and can make data-driven decisions on pricing and marketing. For any business serious about selling online in Saudi Arabia, professional outsourcing is not a choice—it's a legal and operational necessity.