Saudi VAT: Registration Thresholds & Filing Rules

Businesses operating in Saudi Arabia continue to work under a standard 15% Value Added Tax (VAT) on standard-rated taxable supplies, with clear registration thresholds and ongoing compliance duties that remain in place through 2026. Understanding when to register — and how to keep filing correctly — is essential for shop owners, service providers and freelancers alike.

Registration becomes mandatory when a business's taxable supplies exceed SAR 375,000 over the previous 12 months, or are expected to exceed that figure in the coming 12 months. Voluntary registration is available for businesses whose taxable supplies or expenses exceed SAR 187,500 but stay below the mandatory threshold. Below SAR 187,500, registration is generally not available. Non-resident businesses supplying taxable goods or services in the Kingdom usually must register regardless of the threshold and may need a Saudi tax representative.

Registration is free and completed electronically through ZATCA's online portal, where applicants submit taxpayer details, business activities, financial and bank information, and required documents. Once approved, a VAT certificate is issued electronically and has no fixed expiry while the registration stays active.

Filing and ongoing duties

Registered businesses must issue compliant tax invoices showing the taxable amount, VAT rate, VAT amount, and required supplier and customer details, in line with the Kingdom's e-invoicing system and its integration requirements. VAT returns are filed electronically: businesses with annual taxable supplies of SAR 40 million or more generally file monthly, while those below that level generally file quarterly unless another period is assigned.

Returns and payments are due by the last day of the month following the tax period — for example, a January–March quarterly return is due by April 30. Payment is made through the ZATCA portal with no separate filing fee. Ongoing obligations include calculating output VAT, deducting eligible input VAT, keeping accounting records, and updating registration details when needed.

Businesses that permanently stop taxable activity, or no longer meet the conditions, must request deregistration electronically, noting that voluntary registration can carry a minimum continuation period under the applicable rules.

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