VAT 2026: New Filing, E-Invoicing & Marketplace Rules

Businesses across the Kingdom face a series of VAT compliance milestones in 2026, even as the standard rate holds steady at 15% — unchanged since 1 July 2020. The updates centre on e-invoicing deadlines, filing rules, and new obligations for online marketplaces.

Registration thresholds for resident businesses remain in place. VAT registration is mandatory once annual taxable supplies exceed SAR 375,000, while voluntary registration is allowed between SAR 187,500 and SAR 375,000. Non-resident businesses must register from their first taxable supply where no resident customer can self-account under reverse charge, and are required to appoint a Saudi-based tax representative.

Filing frequency depends on turnover: monthly returns are required if annual taxable turnover exceeds SAR 40 million, and quarterly returns apply at SAR 40 million or below. In both cases, returns and payments are due by the last day of the month following the tax period. Registration, filing, payments, and e-invoicing integration are completed through ZATCA's online portal and the Fatoora platform.

Fatoora e-invoicing deadlines

Two new integration waves take effect in 2026. Under Wave 23, taxpayers with annual turnover above SAR 750,000 must integrate with Fatoora by 31 March 2026. Under Wave 24, those with turnover above SAR 375,000 must integrate by 30 June 2026. After Wave 24, all VAT-registered taxpayers in scope must issue and transmit compliant electronic invoices through Fatoora, requiring accounting or ERP systems to link directly with the platform.

From 1 January 2026, electronic marketplaces that facilitate supplies by resident suppliers who are not VAT-registered must act as deemed suppliers — charging VAT and remitting it to ZATCA. Similar rules already apply to platforms handling non-resident suppliers. Operators are advised to strengthen supplier verification, keep residency records, and adjust contracts and invoicing accordingly.

For residents and business owners, the message is clear: check your turnover band, confirm your filing schedule, and complete Fatoora integration ahead of the relevant deadline to avoid disruption.

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