VAT & Zakat Compliance Deadlines in Saudi Arabia

If you run a business in Saudi Arabia, two deadlines belong on your calendar every year: your VAT return (due the last day of the month after each tax period) and your Zakat return (due within 120 days of your Zakat year-end). Miss either and the penalties add up fast. This is your straightforward guide to VAT and Zakat compliance for businesses in Saudi Arabia: filing and payment deadlines, the ZATCA steps, the rates, and the penalties — written for Riyadh and Jeddah owners alike, Saudi nationals and expat investors.

The short answer: your key VAT and Zakat deadlines

• VAT return (quarterly filers) — file and pay by the last day of the month after the quarter. A Q1 2026 return, for example, was due by 30 April 2026.
• VAT return (monthly filers) — file and pay by the last day of the following month. A July 2026 return was due by 31 August 2026.
• Zakat return — file and pay within 120 days of your Zakat year-end. For a year ending 31 December 2025, the deadline was 30 April 2026.

Everything runs through the Zakat, Tax and Customs Authority (ZATCA) electronic portal or the ZATCA mobile app. There is no separate government filing fee for VAT registration — it costs SAR 0 — and no separate filing fee for Zakat; what you pay is your calculated liability.

VAT compliance in Saudi Arabia, explained

Value Added Tax in the Kingdom is charged at a standard rate of 15% on standard-rated supplies of goods and services. If you sell taxable goods or services — whether you run a trading company in Riyadh, a café in Jeddah, or a consultancy — VAT will almost certainly touch your business.

Who must register for VAT

• Mandatory registration — if your annual taxable supplies exceed SAR 375,000, you are required to register.
• Optional registration — if your annual taxable supplies exceed SAR 187,500 but stay at or below SAR 375,000, you may register voluntarily. Many small businesses do this to reclaim input VAT.

New businesses should keep a close eye on turnover as they grow. Once you cross the mandatory threshold, registration is not optional — and failing to register carries a penalty (more on that below).

How to register with ZATCA

1. Log in to the ZATCA electronic portal.
2. Select the VAT registration service.
3. Complete the registration form with your business details.
4. Submit the supporting information requested.
5. Receive your confirmation by SMS and email.

There is no charge to register. Keep the confirmation and your VAT number safe — you will need to show it on your tax invoices.

How often you file: monthly vs quarterly

Your filing frequency depends on the size of your business:

• Monthly returns — generally required if your annual supplies exceed SAR 40 million.
• Quarterly returns — generally allowed if your annual supplies do not exceed SAR 40 million.

Most SMEs across Riyadh and Jeddah fall into the quarterly bracket, which means four returns a year rather than twelve. A small Riyadh trading company, for instance, will usually file quarterly.

VAT filing and payment deadlines

The rule is refreshingly simple: both the filing and the payment are due on the last day of the month following the relevant tax period.

• A quarterly return for Q1 2026 was due by 30 April 2026.
• A monthly return for July 2026 was due by 31 August 2026.

File and pay through the ZATCA portal or mobile app well before the last day — leaving it to the final afternoon is how avoidable penalties happen.

Zakat compliance in Saudi Arabia, explained

Zakat applies to Saudi and GCC-owned businesses (and the relevant portion of mixed-ownership companies). It is calculated on your Zakat base rather than simply on profit, so it works differently from VAT and from the corporate income tax that applies to foreign-owned shares.

The Zakat rate and base

Zakat is commonly charged at 2.5% of the applicable Zakat base for a lunar year, subject to the applicable Zakat rules and the calculation method used. The base is built from your business's capital, reserves and certain other items, adjusted according to the regulations — so a Jeddah family business, for example, is well advised to have an accountant or advisor run the calculation.

Note a recent change: the current Zakat Collection Implementing Regulation applies to financial years beginning after 1 January 2024, which affects how the base is determined for newer periods.

The Zakat filing and payment deadline

You must file your Zakat return and pay the amount due within 120 days after the end of your Zakat year.

• For a Zakat year ending 31 December 2025, the filing and payment deadline was 30 April 2026.

Businesses on a lunar (Hijri) year should count 120 days from their own year-end.

How to file and pay Zakat

1. Log in to the ZATCA portal.
2. Select the Zakat return service.
3. Complete the declaration.
4. Attach the required documents (typically your financial statements).
5. Submit the return.
6. Pay the issued amount — generally by bank transfer through the SADAD system or another accepted payment method.

There is no separate government filing fee; what you pay is the calculated Zakat liability itself.

Penalties for getting it wrong

ZATCA takes deadlines seriously, and the penalties are deliberately steep to encourage compliance. Here is what non-compliance typically costs on the VAT side:

• Late filing — a penalty of 5% to 25% of the tax that should have been declared.
• Late payment — 5% of the unpaid VAT for each month (or part of a month) the amount stays overdue.
• Failure to register for VAT — a SAR 10,000 penalty.
• Failure to keep VAT invoices, books, records and accounting documents — up to SAR 50,000.

The late-payment penalty compounds monthly, so a small unpaid balance can grow quickly. Filing on time — even if you need to arrange the payment separately — is always the safer move.

The penalty-cancellation initiative

There is good news for businesses that have fallen behind. A penalty-cancellation initiative has been extended through 31 December 2026, subject to its eligibility and settlement conditions. If you have outstanding penalties, it is worth checking whether you qualify to have them cancelled by settling the underlying amounts within the initiative window. Don't leave it late — the window closes at the end of 2026.

A simple compliance calendar for your business

To stay on top of everything, build these habits into your business year:

• Every quarter (or month) — reconcile your VAT, then file and pay through the ZATCA portal before the last day of the following month.
• Once a year — prepare your financial statements and file your Zakat return within 120 days of your year-end.
• Always — keep tax invoices, books and accounting records safely; poor record-keeping is its own penalty.
• Before you scale — watch your turnover so you register for VAT the moment you cross SAR 375,000.

Getting your VAT and Zakat compliance right — with the filing and payment deadlines locked into your calendar — is one of the simplest ways to keep your Saudi business on solid ground. Ready to grow? Browse the latest business opportunities on Saudi Living.

FAQs

What is the VAT rate in Saudi Arabia?

The standard VAT rate is 15% on standard-rated supplies of goods and services.

When is my VAT return due?

Both filing and payment are due on the last day of the month following the tax period. Quarterly filers file four times a year; businesses with annual supplies over SAR 40 million generally file monthly.

What is the Zakat filing deadline?

You must file and pay within 120 days after your Zakat year ends. For a year ending 31 December 2025, the deadline was 30 April 2026.

How much is the penalty for not registering for VAT?

Failing to register when required carries a penalty of SAR 10,000. Separately, late filing is 5%–25% of the tax due, and late payment is 5% of unpaid VAT for each month it stays overdue.

Does it cost anything to register for VAT with ZATCA?

No. VAT registration is free — SAR 0. You register through the ZATCA electronic portal and receive confirmation by SMS and email.

Can I still get penalties cancelled?

Possibly. A penalty-cancellation initiative has been extended through 31 December 2026, subject to its eligibility and settlement conditions. Check whether your outstanding penalties qualify before the window closes.

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