SAUDI ARABIA
COUNTRIES
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VAT in
Saudi Arabia
Saudi Arabia applies a 15% VAT rate, administered by ZATCA, and runs the FATOORAH e-invoicing platform. Whether managing non-resident registration, the tax-representative or bank-guarantee decision, monthly or quarterly VAT returns, or customs and import VAT, GlobalTrade Business provides complete Saudi VAT compliance support.
Quarterly / Monthly
FILING FREQUENCY
Monthly for annual taxable supplies >SAR 40 million; return and payment due by the last day of the following month
No threshold
REGISTRATION THRESHOLD
No threshold for non-resident businesses — first supply triggers obligation; SAR 375,000 for Saudi-established businesses
OVERVIEW
Introduction to VAT in Saudi Arabia
Saudi Arabia introduced VAT at 5% on 1 January 2018 under the GCC Unified VAT Agreement and the KSA VAT Law (Royal Decree M/113), and raised the standard rate to 15% on 1 July 2020. VAT is administered by the Zakat, Tax and Customs Authority (ZATCA). Zero-rated supplies include exports outside the GCC, international transport, qualifying medicines and medical equipment, and investment-grade precious metals; residential rent and margin-based financial services are exempt. Non-resident businesses making taxable supplies must register with no threshold, either through a Saudi tax representative or directly with ZATCA against a bank guarantee.
💡 Key facts for non-Saudi businesses
Since 18 July 2019 a tax representative is optional for non-resident businesses. You can register directly on the ZATCA portal, but you must then appoint a Saudi-resident person to keep your VAT records and lodge a cash security or bank guarantee (assessed at about twice your estimated quarterly output VAT). If you appoint a ZATCA-approved tax representative instead, no guarantee is needed but the representative is jointly liable for your VAT. GlobalTrade Business helps you choose and manages Saudi VAT registration and compliance in English and Arabic.
VAT RATES
Saudi Arabia VAT Rates
Saudi Arabia applies one VAT rate to all taxable supplies, with zero-rated and exempt categories for certain goods and services.
VAT REGISTRATION
VAT Registration in Saudi Arabia
Foreign businesses making taxable supplies in Saudi Arabia must register for VAT regardless of turnover, unless every supply is covered by the reverse charge in the hands of a VAT-registered Saudi customer. Registration is on the ZATCA portal, through a tax representative or directly with a bank guarantee. Saudi-established businesses register once taxable supplies exceed SAR 375,000 a year (voluntary from SAR 187,500).
When do you need to register?
You need a Saudi VAT registration number if you:
Key facts for non-Saudi businesses
✓ Import goods into Saudi Arabia
✓ Sell goods or services to Saudi B2C customers
✓ Hold stock in Saudi Arabia (warehouse, bonded zone, fulfilment centre)
✓ Sell through an online marketplace to Saudi consumers (marketplace deemed-supplier rules apply from 1 January 2026)
✓ Provide electronically supplied services to Saudi consumers
2–4 weeks
ZATCA issues the TIN in about 5,20 business days once the file is complete
📞 Tax Authority
ZATCA
Zakat, Tax and Customs Authority (هيئة الزكاة والضريبة والجمارك)
VAT Number Format
15-digit Unified Registration Number
Raqam Muwahad — e.g. 310122393500003
Fiscal Rep Required
Tax representative optional
Optional since 18 July 2019 ,direct ZATCA registration needs a Saudi-resident record keeper plus a cash security / bank guarantee; an appointed tax representative is jointly liable
Registration process
1
Assess your VAT obligations
We review your business model, supply types and Saudi activities, and decide between a tax representative and direct registration with a bank guarantee.
2
Gather required documents
Certificate of incorporation, articles of association, passport copies of directors/authorised signatory, proof of Saudi taxable activity, bank details, and the tax-representative appointment or bank-guarantee documents.
3
Submit via the ZATCA portal
Application submitted on the ZATCA portal (zatca.gov.sa). We handle all correspondence in English and Arabic.
4
Receive your Saudi
Typically 2–4 weeks. Your 15-digit Tax Registration Number is active and must appear on every tax invoice.
⚠️ Failure to register for VAT in Saudi Arabia on time carries a SAR 10,000 penalty. ZATCA assesses all VAT owed from the date of first taxable supply. Late filing costs 5% to 25% of the VAT due, late payment 5% of the unpaid VAT for each month (or part of a month) of delay, and errors in a return up to 50% of the difference.
RETURNS & DEADLINES
Saudi Arabia VAT Returns
Saudi VAT returns are filed on the ZATCA portal. Businesses with annual taxable supplies of SAR 40 million or less file quarterly; larger businesses file monthly. The return and the payment are both due by the last day of the month following the end of the tax period.
Last day of next month
VAT return and payment deadline (ZATCA portal)
Quarterly
Last day of following month
Q1: 30 Apr | Q2: 31 Jul | Q3: 31 Oct | Q4: 31 Jan
Annual (CA12)
N/A
No standalone annual VAT declaration required
Saudi Arabia Reverse Charge
REVERSE CHARGE
Reverse charge applies when a Saudi VAT-registered business buys services from a non-resident supplier (consulting, IT, licences, digital services): the Saudi customer self-assesses VAT at 15% and claims the input credit on the same return, so the non-resident supplier does not need to register for that supply. Import VAT on goods is paid to ZATCA customs at clearance (15% of the customs value including duty) and recovered as input VAT by registered importers.
Frequency determination
Quarterly filing applies to annual taxable supplies of SAR 40 million or less — returns due by the last day of the following month.
Q1: 30 Apr | Q2: 31 Jul | Q3: 31 Oct | Q4: 31 Jan
Monthly filing required for annual taxable supplies >SAR 40 million, due by the last day of the following month.
E-invoicing in Saudi Arabia (FATOORAH)
Saudi Arabia runs mandatory e-invoicing through ZATCA's FATOORAH platform: Phase 1 (electronic generation) since 4 December 2021 and Phase 2 (real-time integration, XML/PDF-A3 with cryptographic stamp) rolled out in waves since 1 January 2023, reaching businesses with turnover above SAR 375,000 by 30 June 2026. It applies to VAT-registered businesses resident in Saudi Arabia; non-resident taxable persons are not required to use FATOORAH. Non-compliance can be fined up to SAR 50,000 per violation.
INTRASTAT & ESL
Saudi Reporting ,No Intrastat
Saudi Arabia is not an EU member state. There are no Intrastat or EC Sales List obligations. Saudi Arabia is part of the GCC customs union, but each GCC member state applies VAT independently and there is no Intrastat-equivalent for intra-GCC trade. Goods movements are reported through customs declarations on the FASAH platform, and sales are reported only on the VAT return.
Import Customs Declaration
All goods
FASAH customs declaration; import VAT at clearance
Export Customs Declaration
All goods
FASAH export declaration; exports zero-rated
VAT Return Frequency
Monthly or Quarterly
Last day of next month
ZATCA VAT Deadline
Month-end
Of the following month
How GlobalTrade Business Can Help
Your complete Saudi Arabia VAT partner
From first registration to ongoing returns — we manage the full compliance lifecycle so you can focus on your business.
Fiscal Representation
As certified fiscal representative, we assume joint liability and act as your official contact point with tax authorities.
VAT Refund Recovery
Recover VAT paid on business expenses. We manage the full refund claim under the EU VAT Refund Directive.
IOSS & OSS Registration
Sell goods or services to EU consumers without registering in every country. We manage your IOSS or OSS enrolment and handle all cross-border VAT declarations through a single submission.