For businesses operating in Saudi Arabia, maintaining financial records isn’t just a best practice—it’s a legal obligation under ZATCA regulations. Failure to comply can result in hefty fines, penalties, or even business disruption. In this FAQ blog, we’ll walk you through how long you need to retain various financial documents, the compliance implications, and how cloud-based bookkeeping can help simplify the process.

🧾 FAQ: Financial Document Retention in Saudi Arabia

1. How long must businesses retain accounting records in Saudi Arabia?

According to the Zakat, Tax and Customs Authority (ZATCA), Saudi businesses are required to retain accounting records for at least 10 years. This includes:

• General ledgers
• Journals
• Balance sheets
• Profit and loss statements
• Trial balances

Maintaining these records ensures compliance with VAT and Zakat laws and prepares you for audits or official inquiries.

🔗 Visit the ZATCA official guidelines for up-to-date record retention policies.

2. How long should VAT invoices and related documents be kept?

All VAT-related documents must also be kept for 10 years, including:

• Tax invoices (sales and purchase)
• Credit and debit notes
• Import/export documentation
• VAT returns and reports

These documents must be easily retrievable and properly archived to ensure ZATCA compliance.

3. Are there different requirements for electronic documents and e-invoices (FATOORA)?

Yes. Under the e-invoicing (FATOORA) regulations, electronic invoices must be retained in a readable and accessible digital format for at least six years (but 10 years is advised to align with other financial records). The documents must be stored in compliance with cybersecurity and data integrity standards.

🔗 Learn more about e-invoicing on PwC Saudi Arabia’s FATOORA insights.

4. What are the consequences of not retaining financial documents properly?

Failing to maintain proper financial documentation can lead to:

• Penalties for non-compliance
• Inaccurate tax filings
• Legal complications during audits
• Loss of ZATCA registration or suspension

Regular, organized record-keeping is essential for safeguarding your business operations and financial integrity.

5. How can cloud-based bookkeeping help?

With Cloud-based Bookkeeping from EDA Wealth, your documents are securely stored, automatically backed up, and instantly accessible. Our platform is designed to:

• Meet ZATCA’s compliance requirements
• Reduce manual filing and archiving errors
• Provide real-time financial tracking
• Simplify audit readiness

This modern solution not only streamlines your operations but also ensures you’re always compliance-ready.

6. What records are required for Zakat calculation?

For Zakat purposes, businesses must retain:

• Ownership and equity statements
• Asset and liability breakdowns
• Annual Zakat returns
• Supporting calculations and payment receipts

These must be preserved for 10 years to comply with Zakat regulations in Saudi Arabia.

✅ In Summary

Keeping your records safe, organized, and ZATCA-compliant is non-negotiable in Saudi Arabia’s tightly regulated business environment.

📞 Need help ensuring compliance?
At EDA Wealth, we specialize in bookkeeping for VAT in Saudi Arabia, regulatory adherence, and advanced financial insight. Let us help you stay organized and compliant—so you can focus on growing your business.