Healthcare Accounting & Advisory Saudi Arabia

Healthcare Sector

Healthcare Financial Compliance in Saudi Arabia

Our Healthcare sector clients include private hospitals, medical clinics, pharmaceutical companies, medical device distributors, and health insurance providers. These businesses require financial advisors who understand not just general accounting standards, but the specific ZATCA treatment, sector regulatory requirements, and Vision 2030 compliance obligations that apply to their industry.

Saudi Arabia's healthcare sector is undergoing its most significant transformation in decades — with Vision 2030's privatisation of health facilities, new private hospital licences, and the expansion of CCHI-regulated insurance creating a rapidly evolving compliance environment:

• VAT on medical services: Most medical services provided by licensed practitioners are exempt from VAT in Saudi Arabia — but the exemption has specific conditions, and supplies that don't meet them (cosmetic procedures, certain diagnostics, imported medical equipment) are taxable at 15%. Misclassification of exempt vs taxable medical supplies is a frequent ZATCA audit trigger.
• Insurance reimbursement accounting: Hospitals operating on insurance-based billing must manage accounts receivable by payer, track claim approval rates, account for partial payments and write-offs, and reconcile insurance company payments to patient accounts monthly.
• MOH licensing and audit: MOH-regulated hospitals and clinics require annual financial reporting as a licence renewal condition. The financial statements must be prepared in accordance with IFRS and audited by a professionally registered firm.