Businesses operating in Saudi Arabia should review their tax obligations ahead of 2026, as the standard value-added tax (VAT) rate remains at 15% on most taxable goods and services. Selected supplies stay zero-rated at 0%, including exports, international transport, qualifying medicines and medical equipment, and certain investment metals.
VAT registration is mandatory for resident businesses whose annual taxable supplies exceed SAR 375,000, while voluntary registration is permitted for those exceeding SAR 187,500. Registration is completed through the electronic tax portal using the business's commercial registration and tax data.
Filing deadlines
The filing and payment deadline is the last day of the month following the end of the tax period. Businesses with annual supplies above SAR 40 million file monthly; for example, the January 2026 period is due by 28 February 2026, the February 2026 period by 31 March 2026, and the July 2026 period by 31 August 2026.
Businesses with annual supplies not exceeding SAR 40 million file quarterly. The second quarter of 2026 (1 April–30 June) is due by 31 July 2026, and the third quarter (1 July–30 September) is due by 31 October 2026.
VAT returns are filed online through the official tax portal and mobile application, with electronic payment made through the same channels or linked banking services. A unified call center (19993), online chat, and digital support channels are available for compliance queries.
Late submission of returns and late payment trigger administrative fines, and prompt filing is strongly advised to avoid penalties. A temporary penalty-waiver and relief initiative linked to e-invoicing and VAT compliance is set to expire on 30 June 2026, giving businesses a limited window to correct their status.
Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.
Follow Saudi Living for daily updates:
- Instagram - @saudiliving
- X - @saudiliving
- Facebook - @saudiliving
- YouTube - @saudiliving
Up Next
New Saudi Investment Law: No Fees, Faster Registration
Saudi Arabia's new Investment Law gives foreign and local investors equal treatment, replaces licensing with free registration, and offers major incentives.
Aug 27,2026
How to Register a Used Car in Saudi Arabia (2026)
How to register a used car in Saudi Arabia: step-by-step 2026 guide to the Absher transfer, fees (around SAR 380), inspection and insurance.
Aug 27,2026
VAT in Saudi Arabia: Register at SAR 375,000 Threshold
Saudi businesses must register for VAT once taxable supplies reach SAR 375,000 in any rolling 12-month period, with registration handled online via ZATCA.
Aug 26,2026
Company Setup: Registration Fees and UBO Rules
Commercial registration in Saudi Arabia costs SAR 200, while beneficial owner reporting is free. New UBO rules took effect in January 2026.
Aug 26,2026Related Stories
Don't Miss Similar Listings
Be the first to know when new stories on this topic are published.
