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

Canonical: https://trykintsugi.com/sales-tax-guides/middle-east/saudi-arabia
Published: July 19, 2026

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

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## 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

## 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 |

#### 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. 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 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].

#### Sources

- [1] [Zakat, Tax and Customs Authority — VAT rules and regulations (15% standard rate)](https://zatca.gov.sa/en/RulesRegulations/VAT/Pages/default.aspx)

- [2] [Zakat, Tax and Customs Authority — VAT registration (SAR 375,000 and SAR 187,500 thresholds)](https://zatca.gov.sa/en/eServices/Pages/eServices_002.aspx)

- [3] [Zakat, Tax and Customs Authority — VAT Implementing Regulations (filing, zero-rated and exempt categories, disputes)](https://zatca.gov.sa/en/RulesRegulations/Taxes/Documents/Implmenting%20Regulations%20of%20the%20VAT%20Law_EN.pdf)

- [4] [Zakat, Tax and Customs Authority — Input Tax Deduction guideline](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Input%20Tax%20Deduction.pdf)

- [5] [Zakat, Tax and Customs Authority — E-invoicing (FATOORAH)](https://zatca.gov.sa/en/E-Invoicing/Pages/default.aspx)

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

#### Frequently asked questions

### 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.

### Is SaaS taxable in Saudi Arabia?

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

### 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.

### 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.