Back to News

Saudi VAT Penalty Exemption Extension: How Sellers Can Use the Compliance Window

2026-05

Saudi ZATCA extended its VAT penalty exemption program through end of 2025. While the exemption has ended, its policy signals remain important.

Saudi VAT Key Points

  • Standard rate: 15%
  • Exemption scope: Late registration/filing/payment penalties
  • 2026+: Normalized enforcement

2026 Seller Tips

Registered sellers: File on time, pay promptly, maintain 5-year records.

Unregistered sellers: Register if turnover exceeds SAR 375,000.

Noon FBN sellers: Correctly declare VAT collected by Noon.

8ship Compliance Services

* VAT registration (3-5 business days)

* Monthly/quarterly filing

* ZATCA e-invoicing integration