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

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]

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.

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. 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]

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].

Late registration carries a SAR 10,000 penalty. Late filing is penalized 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].

• [1] Zakat, Tax and Customs Authority — VAT rules and regulations (15% standard rate)

• [2] Zakat, Tax and Customs Authority — VAT registration (SAR 375,000 and SAR 187,500 thresholds)

• [3] Zakat, Tax and Customs Authority — VAT Implementing Regulations (filing, zero-rated and exempt categories, disputes)

• [4] Zakat, Tax and Customs Authority — Input Tax Deduction guideline

• [5] Zakat, Tax and Customs Authority — E-invoicing (FATOORAH)

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