VAT in Saudi Arabia: Registration Thresholds and Key Requirements

Who must register for VAT?

According to ZATCA guidance, registration is mandatory when the value of taxable supplies over the previous 12 months exceeds SAR 375,000, or is expected to exceed it in the next 12 months.

Voluntary registration

A resident business whose taxable supplies or taxable expenses exceed SAR 187,500 over 12 months may register voluntarily. Voluntary registration can allow the business to recover input VAT on its expenses. Businesses below SAR 187,500 are not required to register.

The standard rate

Most goods and services in Saudi Arabia are subject to VAT at the standard rate, currently 15%. Some supplies are zero-rated or exempt under the VAT regulations, so check the treatment of your specific activities.

Your main obligations after registering

• Issue tax invoices that meet ZATCA requirements, including e-invoicing (Fatoora) rules
• File VAT returns and pay any VAT due by the deadlines that apply to you
• Keep invoices, credit and debit notes and accounting records
• Update ZATCA when your business details change

E-invoicing (Fatoora)

ZATCA is rolling out e-invoicing Phase 2 (the Integration Phase) in waves, and selected taxpayers must connect their invoicing system to the Fatoora platform. See our ZATCA e-invoicing guide for details.

How Luba helps

Luba Global Ventures supports VAT registration, organizes your records for VAT returns, and coordinates ZATCA-compliant ERP and e-invoicing setup.