The Kingdom of Saudi Arabia is modernising its tax system and encouraging businesses to comply with the new mandates by providing the necessary technological infrastructure. With this, businesses are required to ensure the tax numbers of customers, suppliers and vendors are valid and accurate. It is crucial to verify tax numbers to maintain compliance, ensure transactions are conducted only with legitimate businesses, and avoid penalties. This central guide explains the methods businesses can use to quickly and accurately verify tax number KSA
Verifying tax numbers is a crucial step in financial compliance in the Kingdom of Saudi Arabia. Businesses must ensure that the tax numbers listed on invoices, contracts, and vendor records belong to legitimate and active taxpayers. Businesses must comply with tax regulations issued by the Saudi tax authority for the following reasons:
- Invalid or incorrect tax numbers on customer, vendor or supplier invoices may result in rejected transactions or high regulatory penalties from ZATCA.
- Tax number verification helps businesses ensure they are dealing with legitimate, tax-verified businesses. This significantly reduces the risk of fraudulent suppliers submitting fake invoices and tax evasion. Tax number verification keeps the entire financial system transparent.
- Valid tax numbers ensure that VAT transactions are recorded correctly in ZATCA systems. This allows companies to keep accurate records for VAT filings and financial reporting.
- Verified tax numbers reduce the risk of invoice disputes or payment delays due to incorrect tax information.
How to verify VAT number in Saudi Arabia - Different methods explored
There are many ways a business can use to verify Tax Numbers in Saudi Arabia. These include using official government tools, integrated accounting applications, mobile apps, or contacting ZATCA support.
Steps to check VAT number Saudi on ZATCA
Follow these steps to verify any Tax Number on the ZATCA portal:
1. Access and log in to the ZATCA portal
Visit the official ZATCA website at https://zatca.gov.sa/. Then navigate to E-Services, click on General Services, and then select Verification Services.
2. Select the tool
Choose the VAT Taxable Person Lookup service.
3. Enter all the details
Input the 15-digit VAT account number, the Commercial Registration (CR) Number or the VAT Certificate number.
4. Submit
Complete the Captcha puzzle and click “Send” or “Search”.
5. Review the final results
The ZATCA VAT lookup will display the business name, registration details, and VAT status (active or inactive).
Verification through the ZATCA mobile app
Individuals and businesses can easily verify tax numbers using the official VAT mobile application developed by ZATCA. With the mobile app, users can check and verify the Tax Numbers on invoices. They are also allowed to validate the QR codes present on electronic invoices. All users have to do is scan the QR code on the electronic invoice. This will confirm whether the transaction is valid.
Here are the steps involved:
1. Install/open the ZATCA mobile app
Download the ZATCA app to your Android or iPhone mobile device and Log in.
2. Access the QR code scanner
Right on the Home screen, you will see the option to scan QR codes. This option is typically named “e-Invoice verifier” or “scan QR code”.
3. Scan the QR code
Align your phone’s camera with the QR code on the electronic invoice. It will be scanned.
4. Results
The app will display on the screen whether the invoice has been successfully validated or validation has failed.
This method is quite useful for instant verification in retail or field environments.
Verification through ZATCA support
You can contact ZATCA directly for help verifying Tax Numbers.
1. By phone
Call 19993 to request help from ZATCA. Enter the VAT number on your keypad when prompted, and they will validate it for you over the phone.
2. Email support
Send an inquiry to info@zatca.gov.sa with all the details and they will verify the Tax number for you through email.
Steps to verify a Tax Number on an ERP like TallyPrime
Here are the steps to verify a Tax Number on TallyPrime:
1. Validate VAT numbers (TRN)
Invoices sent and received in KSA must carry a valid 15-digit TRN that begins and ends with ‘3’.
2. Update buyer ID details
Click the “Buyer ID details” report in TallyPrime to view and update the customer's TIN (Tax Identification Number) and CRN (Commercial Registration Number).
3. Enable VAT in TallyPrime
Navigate to F11 (Company Features) and set Value Added Tax (VAT) to Yes.
4. Verify VAT details
Open the VAT details screen on TallyPrime to ensure your VAT number matches your e-invoice certificate.
Common scenarios where tax verification is required
Tax number verification is performed at different key points in the operation of a business:
1. Onboarding of new vendors
Whenever you add a new supplier or vendor to your business, you must verify their tax number to confirm they are registered for VAT.
2. Invoice processing
Businesses should compulsorily verify all Tax Numbers listed on different invoices before integrating them into invoice accounting systems and records.
3. Payments to suppliers
Verifying tax numbers must be done before payments to prevent funds from being paid to non-registered or fraudulent suppliers.
4. Compliance audits
Companies typically verify all tax numbers in their systems during internal or external audits to ensure tax documentation is accurate.
Common errors in tax number verification
There are many common errors that can occur during Tax Number verification. Some of these errors include:
1. Incorrect number length
VAT numbers in Saudi Arabia mandatorily have 15 digits. Missing a digit or adding an extra digit will result in an instant verification failure.
2. Typographical errors
Manual data entry errors are one of the biggest causes of invalid tax number verification. They are bound to occur when invoices or such documents are being prepared.
3. Inactive registrations
Businesses may have had their Tax Numbers suspended or may no longer be active, so their Tax Numbers may be deregistered.
4. Incorrect identifiers
Some businesses may incorrectly enter their CRN or other identifiers instead of entering their VAT number. This also throws up an error.
The Saudi tax authority provides several Tax Number verification methods, including online lookup tools, mobile applications, and QR code validation. By using these tools in conjunction with automated accounting systems like TallyPrime, businesses can streamline the verification process and reduce administrative workload. A foolproof tax verification process not only saves businesses from compliance risks but also increases transparency and trust within the Saudi taxation ecosystem, which is exactly what ZATCA wants.
