Technology & IT Services Accounting & Tax in Saudi Arabia

Our Saudi technology accounting services are built for companies navigating the Kingdom's digital economy:

• SaaS Companies: Local or international SaaS providers with a Saudi entity selling subscriptions to the KSA market.
• IT Service & Implementation Partners: Firms providing systems integration, cloud consulting, and managed IT services to Saudi government and enterprise clients.
• Software Development Companies: Businesses building custom software for local clients, requiring careful project accounting and milestone-based billing.
• E-learning & Health-Tech Platforms: Digital service providers who must comply with ZATCA's e-invoicing rules for every subscription or transaction.

Specialized tech accounting is mandatory from your first invoice in Saudi Arabia. It becomes absolutely critical at these key stages:

• When You Make Your First Sale: You are legally required to issue a ZATCA-compliant e-invoice. A simple PDF is not sufficient and will lead to penalties.
• When You Pay for Foreign Software: Payments to overseas software vendors (e.g., Microsoft, Google, AWS) are subject to withholding tax (WHT), which you must deduct and remit to ZATCA.
• When You Have Recurring Revenue: Correctly recognizing revenue from annual or monthly subscriptions over the contract term is essential for accurate financial reporting.
• When You Register for VAT: Once your turnover exceeds SAR 375,000, you must register for VAT and manage the complex rules for digital services.
• During a ZATCA Audit: The tax authority will scrutinize your e-invoicing records, VAT filings, and withholding tax compliance. Perfect records are your only defense.

The cost of outsourced tech accounting in KSA reflects its critical role in ensuring legal compliance. The ROI comes from avoiding substantial penalties.

• Early-Stage Tech Companies: SAR 6,000 - SAR 12,000 per month. This covers ZATCA-compliant bookkeeping, VAT returns, and management of basic withholding tax.
• Growth-Stage SaaS Companies: SAR 12,000 - SAR 25,000 per month. This includes more complex revenue recognition schedules, SaaS metric reporting (MRR, Churn), and more intensive WHT management.
• Mature Tech Enterprises: Custom pricing starting at SAR 25,000+, often including fractional CFO services for strategic planning and enterprise sales support.

For tech companies in Saudi Arabia, compliance risks are severe and strictly enforced:

• E-invoicing (Fatoorah) Violations: This is the most common and immediate risk. Failing to issue ZATCA-compliant e-invoices for every single sale can lead to significant fines.
• Withholding Tax (WHT) Penalties: Failure to withhold and remit tax on payments to foreign software and service providers is a major compliance failure with costly penalties.
• VAT Errors on Digital Services: Incorrectly applying VAT to digital services sold within KSA or to other GCC countries can lead to complex compliance issues and fines.
• Data Residency & Cybersecurity Laws: Non-compliance with data localization rules set by authorities like the Communications, Space & Technology Commission (CST) can lead to operational blocks.

The technical and legal requirements of ZATCA's e-invoicing system, combined with complex withholding tax rules, make DIY accounting impossible for a tech company in Saudi Arabia. General accounting firms often lack the specific expertise in recurring revenue models and WHT on software royalties.

Outsourcing to YourLegal's tech finance partners provides a comprehensive, compliant solution from day one. We utilize ZATCA-approved systems to handle your e-invoicing for subscription billing automatically. Our team manages your WHT obligations on foreign software payments, ensuring you are fully compliant. We provide the financial reports and SaaS metrics you need to manage your growth and report to investors. By handling this complex infrastructure, we enable you to focus on product innovation and sales in one of the world's fastest-growing digital economies.