VAT Registration in Saudi Arabia: Thresholds for 2026

Businesses operating in Saudi Arabia are reminded of the value-added tax (VAT) registration thresholds that remain in force in 2026, with mandatory registration triggered once annual taxable supplies exceed a set limit. The rules apply to companies across the Kingdom, including those based in Riyadh and Jeddah.

Mandatory VAT registration is required when a business's annual taxable supplies exceed SAR 375,000, or when they are expected to exceed that figure over the following 12 months. The obligation is assessed on a rolling 12-month basis, and registration must be completed within 30 days of crossing the threshold. The standard VAT rate remains 15%.

Smaller businesses have the option of voluntary registration. Those whose annual taxable supplies or taxable expenses exceed SAR 187,500 but remain below the mandatory limit may choose to register. A key benefit of voluntary registration is that eligible businesses can recover input VAT on qualifying purchases.

Non-resident taxable suppliers face stricter rules: they must register from their very first taxable supply in the Kingdom, with no threshold applying. All registration and related filings are handled through the ZATCA e-services portal.

Why it matters

Understanding these thresholds helps business owners and entrepreneurs stay compliant and avoid penalties. A VAT registration does not carry a fixed expiry period; it remains active until the conditions for deregistration are met. For residents and expats running or planning a business, tracking taxable supplies against these limits is an important part of financial planning in the Kingdom.

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