Cloud accounting software with VAT for the Saudi market
Cloud accounting software for the Saudi market must automatically handle: 15% VAT on every invoice, VAT reports aligned with ZATCA reporting requirements, Zakat calculated on the corporate Zakat base, Phase 1 + Phase 2 e-invoicing, and bilingual Arabic + Hijri-date support. Modarhem is built for these requirements from day one, with reports ready for quarterly or monthly filing depending on your VAT registration status.
When must my company register for VAT?
Registration is mandatory if your annual sales exceed SAR 375,000. Voluntary registration is allowed between SAR 187,500 and 375,000. Below SAR 187,500 is not eligible. Some activities (imports, transport of goods) have special rules. ZATCA is the official authority.
How does Modarhem calculate VAT on invoices?
Every invoice computes VAT line-by-line (15% of post-discount amount). Modarhem supports exempt invoices, zero-rated invoices (exports), and standard-rated 15% invoices. Monthly / quarterly VAT reports automatically aggregate sales and purchases and display output VAT minus input VAT = payable.
Does the product compute Zakat automatically?
Yes — the corporate Zakat calculator computes the Zakat base from balance-sheet data automatically: (current assets − short-term liabilities) + statutory adjustments. Zakat is 2.5% (Hijri year) or 2.578% (Gregorian year) on the base. A Zakat report is provided ready for review before filing.
What invoice types exist in ZATCA, and which require digital signing?
Simplified Tax Invoice for individuals (B2C) — needs QR (Phase 1) + submission within 24 hours (Phase 2 Reporting). Standard Tax Invoice for businesses (B2B) — needs QR + pre-clearance approval from ZATCA before delivery to the customer (Clearance). Both require digital signing under Phase 2.
Are Modarhem accounting reports compliant with IFRS standards?
Modarhem supports accounting treatment per IFRS and Saudi SOCPA standards — income statement, balance sheet, cash-flow statement, trial balance, general ledger, aging reports, and bank reconciliation. Reports export to Excel and PDF.
How is accounting data backed up and how secure is it?
Modarhem runs on secure cloud infrastructure with daily encrypted backups, encryption at rest and in transit, and strict per-tenant data isolation. Practices align with the Saudi Personal Data Protection Law (PDPL). You can export your data anytime in standard formats. Full infrastructure detail and change log live at /security.