Saudi VAT Stays at 15%: Registration Rules Explained

Saudi Arabia's standard rate of value-added tax (VAT) remains 15% on taxable supplies, unless a supply is zero-rated or exempt. For business owners across the Kingdom, the core rules on when and how to register continue to shape day-to-day compliance.

Registration becomes mandatory for a business once its annual taxable supplies exceed SAR 375,000 over the relevant 12-month period. Voluntary registration is available when taxable supplies or taxable expenses exceed SAR 187,500 over 12 months. Non-resident businesses may be required to register regardless of turnover when they must collect and remit Saudi VAT.

A resident business that crosses the mandatory threshold generally has 30 days after the end of the month in which the threshold was exceeded to apply. The application is completed electronically through the ZATCA portal, and the VAT account and certificate are issued electronically. No VAT-registration fee is stated. Applicants typically provide taxpayer identification, commercial-registration details where applicable, business activity, taxable supplies, financial information, and authorized-person details. Certificates can be checked using ZATCA's electronic verification service with the VAT account number, commercial-registration number, or certificate number.

Returns, filing and e-invoicing

VAT returns are submitted and paid electronically through the ZATCA portal or application. Businesses with annual supplies above SAR 40 million generally file monthly, while other registered businesses file quarterly unless ZATCA assigns another period.

Looking ahead, the twenty-fifth Integration Phase wave of e-invoicing covers VAT taxpayers whose taxable revenues exceeded SAR 187,500 in at least one of the years 2022 to 2025. Selected taxpayers were notified to comply with the applicable integration requirements. For help, ZATCA's unified contact number is 19993, available 24 hours a day.

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