VAT & Zakat in Saudi Arabia: Rules and Registration

Businesses operating in Saudi Arabia continue to work under a standard value-added tax (VAT) rate of 15% on most taxable supplies of goods and services, a rate that remains unchanged in 2026. Understanding registration, filing and compliance obligations remains essential for companies of all sizes across the Kingdom.

Resident businesses must register for VAT once their annual taxable supplies exceed SAR 375,000, and registration is required within a short statutory period commonly treated as 30 days. Voluntary registration is allowed for businesses with annual taxable supplies between SAR 187,500 and SAR 375,000, while those below SAR 187,500 generally cannot register. Non-resident suppliers making taxable supplies in the Kingdom must register regardless of their revenue.

Registration is completed online through the Zakat, Tax and Customs Authority (ZATCA) electronic portal and app. Businesses create an account, submit commercial registration and identification data, choose their tax periods, and receive a VAT registration certificate and Tax Identification Number electronically.

Filing and deadlines

Companies with annual taxable supplies above SAR 40 million file monthly returns, due by the end of the month following the tax period. Those below SAR 40 million file quarterly, also due by the end of the following month. A nil return must be filed even when there is no taxable activity. Returns and payments are handled through the ZATCA website or mobile app, with round-the-clock support available via the unified call center on 19993, email and live chat.

Non-compliance carries real costs. Failing to register when mandatory can trigger a fixed fine of SAR 10,000, while late filing of returns leads to a fine between 5% and 25% of the VAT that should have been declared. Additional penalties may apply for late payment, incorrect returns or poor record-keeping. Businesses must keep VAT invoices, accounting records and tax documents for the required retention periods and make them available to ZATCA on request. VAT law amendments have also been approved and take effect in 2026, making it important for companies to review their obligations early.

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