The Zakat and Income Authority and the Saudi Organization for Certified Public Accountants have launched a project to audit large enterprises to ensure that their accounting systems are ready and prepared for the implementation of the value-added tax (VAT), scheduled for early January 2018. The project involves certified and licensed auditors from the Council of Certified Public Accountants conducting on-site visits to large enterprises in Riyadh, Dammam, and Jeddah to assess their readiness to implement the tax, identify issues that could hinder the alignment of their systems with the tax requirements, and work to find solutions in coordination with the Zakat Authority. The on-site visits, which began this week, are scheduled to continue through December 21, with more than 45 auditors participating.

The Zakat Authority emphasized that the audit project for large establishments is part of its efforts to provide all possible support to businesses in preparation for the implementation of the value-added tax, and it values its partnership with the Accountants Authority for its valuable expertise in adopting the best methods for inspecting businesses. The assessment criteria to be adopted by the appointed auditors cover several key aspects, including the existence of a unit responsible for VAT-related operations and the oversight of VAT awareness programs within the business, as well as ensuring the readiness of the entity’s accounting systems, compliance with bookkeeping, record-keeping, and invoicing requirements, supplier and customer contracts, and the existence of data protection protocols, among other factors.