VAT Returns in Saudi Arabia: Quarterly vs Monthly Filing

Saudi Living is clarifying how value-added tax (VAT) filing works in Saudi Arabia, after confusion over whether businesses with annual taxable supplies of up to SAR 40 million may file their VAT returns once a year. That is not correct: these businesses generally file their VAT returns on a quarterly basis, every three months.

Businesses whose annual taxable supplies exceed SAR 40 million must file their VAT returns monthly. For all others below that threshold, the standard tax period is three months.

Quarterly returns are generally due by the last day of the month following the end of each quarter. For example, the return for the first quarter of 2026 was due by April 30, 2026. Returns and any payments are submitted electronically through the ZATCA taxpayer portal or the ZATCA mobile application, and no government fee is charged for submitting a return.

Registration thresholds and penalties

VAT registration becomes mandatory when a business's taxable supplies exceed SAR 375,000 over a 12-month period. Voluntary registration is available when taxable supplies or taxable expenses exceed SAR 187,500 over 12 months.

Registered businesses must file a return for every applicable tax period, even when no tax is payable. Filing late carries penalties ranging from 5% to 25% of the tax that was required to be declared, so meeting deadlines matters for every registered business.

For the Kingdom's residents, expats, and the many small and medium enterprises operating in Riyadh, Jeddah, and beyond, knowing the correct filing cycle helps avoid unnecessary fines and keeps compliance straightforward.

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