VAT in Saudi Arabia: Registration and Filing Guide

Businesses operating in Saudi Arabia are required to follow a clear set of rules for registering and filing value-added tax (VAT), which is charged at a standard rate of 15% on taxable supplies. Understanding thresholds and deadlines helps owners avoid significant penalties.

Registration becomes mandatory once a business's taxable supplies exceed SAR 375,000 over the previous or expected next 12 months. Firms with supplies or eligible expenses between SAR 187,500 and SAR 375,000 may register voluntarily. Once the mandatory threshold is crossed, businesses have 30 days after the end of that month to apply. Registration itself carries no fee.

Applications are completed through the ZATCA online portal or application. After logging in, users open General Services, select VAT Registration, complete the form and submit it. The VAT certificate is then issued electronically upon approval. Processing typically takes up to five working days for an establishment or individual, and up to three working days for a VAT group.

Filing and compliance

After registering, businesses must issue compliant tax invoices, collect and pay VAT, keep accounting records, and file returns. Filing is monthly for companies with annual taxable supplies above SAR 40 million, and quarterly for those at or below that figure, unless an approved alternative applies. Some establishments may be approved for annual filing. Returns must be filed and paid within one month after the end of the tax period — for example, a January–March 2026 quarterly return was due by April 30, 2026. Businesses can confirm a supplier's status using ZATCA's VAT registration verification service.

Penalties are substantial. Failing to register carries a SAR 10,000 fine, a late return costs 5% to 25% of the VAT due, and late payment adds 5% of unpaid VAT for each month or part of a month. An incorrect return causing underpayment is generally penalized at 25% of the difference, while collecting VAT without being registered can reach SAR 100,000. Non-resident suppliers must register upon their very first taxable supply in the Kingdom, regardless of its value.

---

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