VAT Registration in Saudi Arabia: SAR 375,000 Threshold

Oct 21, 2026•2 min read

Businesses operating in Saudi Arabia are required to register for Value Added Tax (VAT) once their taxable supplies cross a set annual threshold, with registration handled electronically through the Zakat, Tax and Customs Authority (ZATCA) portal.

Under the current rules, mandatory VAT registration applies to any business whose taxable supplies exceed SAR 375,000 during the preceding or expected 12-month period. Companies that fall below this figure but reach a lower level can still opt in voluntarily when taxable supplies or taxable expenses exceed SAR 187,500 over a 12-month period.

A business that crosses the mandatory threshold must submit its registration application within 30 days after the end of the month in which the threshold was exceeded. To complete the process, applicants need a ZATCA taxpayer account along with their business details, including commercial registration information, the nature of the taxable activity, turnover figures, and financial-period data.

No registration fee

There is no stated government fee for registering, and the online ZATCA service is free of charge. The SAR 375,000 mandatory threshold and the SAR 187,500 voluntary threshold remain unchanged in the available 2026 information.

The rules matter for small and medium-sized enterprises across the Kingdom, including the many expat-owned and family businesses in Riyadh and Jeddah. Tracking taxable supplies throughout the year helps owners know when they are approaching the limit and avoid missing the 30-day registration window after crossing it. Voluntary registration, meanwhile, can suit newer or smaller operations that want to recover VAT on their expenses before reaching the mandatory level.

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: