VAT registration in Saudi Arabia: thresholds, deadlines and documents
A business resident in Saudi Arabia must register for VAT once its taxable supplies exceed SAR 375,000 over the past 12 months, or are expected to exceed it over the next 12. Registration is optional above SAR 187,500. A business that is not resident in the Kingdom has no threshold at all. VAT is charged at 15%, registration is done online with ZATCA, and registering late costs a fixed SAR 10,000 penalty.
The thresholds at a glance
| Your position | Rule | What to do |
|---|---|---|
| Taxable supplies above SAR 375,000 (past or next 12 months) | Mandatory registration | Apply within 30 days |
| Taxable supplies or expenses between SAR 187,500 and SAR 375,000 | Voluntary registration | Optional; often worth it to recover input VAT |
| Below SAR 187,500 | No registration | Keep monitoring monthly |
| Not resident in Saudi Arabia, making taxable supplies in the Kingdom | Mandatory from the first supply | Register, usually through a tax representative |
How the SAR 375,000 test works
The test looks both ways. Add up your taxable supplies for the last 12 months; if they exceed SAR 375,000, you must register. Then look at the next 12 months; if you reasonably expect them to exceed SAR 375,000, you must register now, without waiting for the sales to happen. Check it at the end of every month.
Taxable supplies include sales at 15% and zero-rated sales such as exports. Exempt supplies do not count towards the threshold.
Deadline and penalty
Apply within 30 days of the end of the month in which you crossed the threshold. If you register late, ZATCA charges a fixed penalty of SAR 10,000, on top of the VAT you should have charged from the date registration became mandatory, which you then owe yourself.
Once registered, the other penalties to know are:
- Late filing of a return: 5% to 25% of the tax due on that return
- Late payment: 5% of the unpaid tax for each month or part of a month it is late
ZATCA's penalty waiver runs until 31 December 2026 and covers late registration, late filing and late payment penalties for returns due on or before 30 June 2026. See our page on VAT and zakat filing for the conditions.
Should you register voluntarily?
If your supplies or expenses are between SAR 187,500 and SAR 375,000, registering lets you recover the 15% VAT you pay on costs, and lets you sell to larger companies that expect VAT invoices. The trade-off is the filing work: returns, records kept in Arabic, and e-invoicing.
One detail matters here. ZATCA's e-invoicing Wave 25 covers businesses with VAT-subject revenue above SAR 187,500 in any year from 2022 to 2025, with integration due by 1 February 2027. A business above the voluntary threshold is likely inside Wave 25 too, so plan registration and Fatoora integration together.
Foreign companies with no Saudi presence
A non-resident business that makes taxable supplies in Saudi Arabia must register from its first supply, with no threshold. In most cases it must appoint a ZATCA-approved tax representative, who is jointly liable for the VAT. If its only Saudi sales are to VAT-registered Saudi businesses, the Saudi customer usually accounts for the VAT under the reverse charge, and the foreign supplier may not need to register for those sales.
What you need to register
- Commercial Registration details
- Investment registration certificate and Articles of Association, for foreign-owned companies
- A Saudi bank IBAN letter in the company's name
- National Address matching the Commercial Registration
- ID or iqama of the authorised signatory
- Evidence of actual or expected taxable turnover
How registration works
- Log in to the ZATCA portal with the company's credentials.
- Choose VAT registration and enter the company, activity and bank details.
- Declare your actual or expected 12-month taxable supplies and upload the evidence.
- Submit. Once approved, download the VAT certificate with your 15-digit VAT number.
- Put the VAT number on every invoice and set your first return date.
Complete applications are usually approved within days. Mismatches between the name or address on the CR, the National Address and the application are the usual cause of delay.
After registration
- Returns: monthly if annual taxable supplies exceed SAR 40 million, quarterly below that. Returns and payment are due by the end of the month after the period.
- Invoices: every tax invoice must meet ZATCA's e-invoicing rules, and most businesses must integrate with Fatoora (Phase 2) by their wave deadline.
- Records: keep accounting records and invoices in the Kingdom, in Arabic, for at least six years in most cases.
- Deregistration: possible if taxable supplies stay below SAR 187,500 for 12 months.
Frequently asked questions
Talk to us
We register companies for VAT, file returns and handle Fatoora integration from our Dammam office, and we file Alliant Co.'s own VAT returns. See our VAT and zakat filing service or message us on WhatsApp.
Sources
- ZATCA, VAT registration and VAT Implementing Regulations: zatca.gov.sa
- ZATCA, e-invoicing Wave 25 announcement: zatca.gov.sa
- ZATCA, Cancellation of Fines and Exemption of Financial Penalties initiative (extended to 31 December 2026): zatca.gov.sa
Prefer to talk first?
Message us on WhatsApp and we'll answer your questions directly.
Alliant Co. · CR 7003521841 · Yazid Ibn Malik, Al Khalidiyah Ash Shamaliyah, Dammam 32231 · info@alliant.sa · +966 55 754 2748 · Alliant Co. is a private company and is not affiliated with any government authority.