What is the Saudi Arabia VAT rate in 2026?

15% on most goods and services, in effect since July 2020, with 0% on exports and some exempt supplies.

Do non-residents register for VAT in Saudi Arabia?

Yes. Non-residents must register from the first taxable supply and appoint a ZATCA-approved Saudi tax representative.

How often do businesses file VAT in Saudi Arabia?

Monthly if annual supplies exceed SAR 40 million, otherwise quarterly, due by the end of the following month.

What is the penalty for late Saudi VAT?

SAR 10,000 for late registration, 5%–25% of VAT for late filing, and 5% of unpaid tax per month of delay.

Saudi Arabia VAT Guide for 2026: Rates, Registration & Filing

Q: Is SaaS taxable in Saudi Arabia?

Yes. SaaS and digital services supplied to Saudi customers are taxable at 15%.

Q: What is FATOORAH e-invoicing?

ZATCA's mandatory e-invoicing system; in Phase 2, invoices are cryptographically cleared with ZATCA in real time, with integration waves continuing through 2026.

Saudi Arabia's VAT rate is 15%. Learn the registration thresholds, mandatory e-invoicing (FATOORAH), and filing with ZATCA.

Last updated19 July 2026

Key Takeaways

Saudi Arabia applies a 15% VAT to most goods and services, including digital supplies, raised from 5% in July 2020. Exports, international transport, qualifying medicines, and investment metals are zero-rated, while certain financial services and residential rentals are exempt. SaaS and digital services supplied to Saudi customers are taxable at 15%.

Taxability Snapshot

SaaS

Taxable

Digital Goods

Taxable

Sales Tax Rates

Saudi Arabia applies a 15% VAT to most goods and services, including digital supplies. The rate rose from 5% to 15% on 1 July 2020.[1] A 0% rate covers exports and international transport, and some supplies such as certain financial services and residential rentals are exempt.[1] The tax authority is ZATCA (Zakat, Tax and Customs Authority).[1]

Rate	Applies to
Standard 15%	Most goods, services, digital supplies
Zero 0%	Exports, international transport, medicines, qualifying metals
Exempt	Certain financial services, residential rentals

Saudi Arabia VAT Calculator

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Saudi Arabia · VAT

Standard rate 15%Most goods and services.

Rates as of September 2026. Source: ZATCA: VAT Implementing Regulation amendments (opens in a new tab); ZATCA: VAT Implementing Regulations (opens in a new tab).

Saudi Arabia · Standard rate

15%

VAT rate

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Price before VAT (SAR)

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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.

Registration & nexus threshold

Saudi Arabia uses a VAT registration threshold rather than US-style economic nexus. Registration is mandatory once annual taxable supplies exceed SAR 375,000, and voluntary from SAR 187,500 [2]. A non-resident making taxable supplies in Saudi Arabia must register regardless of the threshold, generally through a resident tax representative [2]. Registration steps are in the How to Register section.

Filing frequency & deadlines

VAT returns are filed monthly where annual supplies exceed SAR 40 million, and quarterly otherwise, due by the end of the month following the period.[1] FATOORAH e-invoicing is in Phase 2, where invoices are cryptographically cleared with ZATCA in real time.[5] Integration waves have continued through 2026: Wave 24 (SAR 375,000 threshold, covering 2022–2024 revenue) had an integration deadline of 30 June 2026, and Wave 25 (SAR 187,500 threshold, covering taxpayers with VAT-taxable revenue above that amount in 2022, 2023, 2024, or 2025) must integrate by 1 February 2027. [1]

Exemptions

Exports, international transport, qualifying medicines, and investment metals are zero-rated, and certain financial services and residential rentals are exempt.[1] SaaS and digital services supplied to Saudi customers are taxable at 15%.[1]

Saudi Arabia does not use US-style resale certificates. A registered business deducts the input VAT it pays on goods for resale and other business purchases against its output VAT [4]. Food is taxed at the standard 15%; only exports and qualifying medicines and medical goods are zero-rated, and certain financial services and residential real estate are exempt [1][3].

Penalties

Late registration carries a SAR 10,000 penalty. Late filing is penalised at 5% to 25% of the VAT due, and late payment adds 5% of the unpaid tax for each month of delay.[2] E-invoicing non-compliance triggers separate fines.[1]

ZATCA audits VAT. To dispute an assessment, a taxpayer files an objection with ZATCA and then escalates to the tax dispute committees (the General Secretariat of Tax Committees) [3].

Sources

Verified July 2026 against Zakat, Tax and Customs Authority guidance.

Frequently asked questions

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