When working in Wafeq, you might need to add new entities to register financial transactions such as invoices and expenses.
This raises an important question:
Should I add the entity as a "Branch" or a separate "Organization"?
What’s the Difference Between a Branch and an Organization?
| Type | Definition |
|---|---|
| Organization | A fully independent legal entity with its own tax number. It is treated as a separate company within the system. |
| Branch | An operational unit under the same organization that shares the same tax number. It's used to organize transactions by location or business unit. |
When to Use a New Organization?
Create a new organization in the following cases:
The entity is located in a different country and follows a different tax authority.
The entity has a different tax number.
The entity is part of a VAT Group in Saudi Arabia.
Any entity with its own tax number = separate organization in Wafeq.
When to Use a Branch?
Add a branch in the following cases:
The entity shares the same tax number as the parent company.
It has a different Commercial Registration (CR) number — that’s acceptable.
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