Saudi VAT Compliance
Saudi Arabia introduced VAT in 2018, raising the rate to 15% in July 2020.
VAT Rates (2026)
Saudi VAT Rates
- Standard: 15%
- Zero-rated: International transport, certain medical services
- Exempt: Financial services (partial), residential rent (partial)
- Threshold: SAR 375,000 annual turnover
Who Needs to Register?
Foreign companies with a PE in Saudi, suppliers exceeding SAR 375,000 turnover, and sellers storing goods in Saudi (Noon FBN, 8ship warehouse) must register.
Registration Process
Saudi VAT Registration
- Step 1 — Submit to ZATCA
- Step 2 — Company documents, passport
- Step 3 — Saudi bank account
- Step 4 — Local address proof
- Step 5 — ZATCA review (~20 days)
- Step 6 — VAT registration number
Tip: ZATCA enforcement is increasing. Timely registration and accurate filing are the best ways to avoid penalties.