Saudi VAT registration checker
Rules checked 6 Oct 2026
You must apply within 30 days of crossing the mandatory threshold. The late registration penalty in the UAE is AED 10,000.
Saudi VAT registration thresholds
| Threshold | Amount | Who it applies to |
|---|---|---|
| Mandatory | SAR 375,000 | Businesses whose annual taxable supplies exceed it, or are expected to in the next 12 months |
| Voluntary | SAR 187,500 | Businesses whose annual taxable supplies or taxable expenses exceed it |
Taxable supplies include sales at 15% and zero-rated sales. Exempt supplies, such as residential rent, do not count.
How the test works
ZATCA looks at the value of your taxable supplies over the previous 12 months, and also at what you expect over the next 12 months. If either is above SAR 375,000, you must register. Apply within 30 days of the obligation arising.
Non-resident businesses that make taxable supplies in Saudi Arabia, and have no Saudi place of residence, generally have to register regardless of the threshold, often through a tax representative.
What changes after you register
- You charge 15% VAT on taxable sales and issue tax invoices that meet ZATCA’s e-invoicing rules.
- You file VAT returns: monthly if your annual taxable supplies exceed SAR 40 million, otherwise quarterly.
- You may be brought into Phase 2 of e-invoicing (integration with ZATCA’s Fatoora platform) in one of ZATCA’s waves. See our ZATCA e-invoicing guide.
Voluntary registration: worth it?
If most of your customers are VAT-registered businesses, registering voluntarily lets you reclaim 15% VAT on your costs without making your prices more expensive for them. If your customers are mainly consumers, adding 15% is a big jump, so think carefully before registering early.
Frequently asked questions
Is the test based on profit?
No. It is based on the value of taxable supplies, which is your sales, not your profit.
Do zero-rated exports count toward the threshold?
Yes. Zero-rated supplies are taxable supplies, so they count.
Where do I register?
Registration is done online through ZATCA’s portal.
What if my sales fall later?
If your taxable supplies fall below the voluntary threshold, you may be able to apply to deregister. ZATCA’s rules set the conditions.
Do I count sales to other GCC countries?
Count taxable supplies, including zero-rated ones. Exempt supplies are excluded.
I am registered. When does e-invoicing integration apply to me?
ZATCA selects businesses in waves by revenue. Wave 25 covers businesses with VAT-subject revenue above SAR 187,500 in any year from 2022 to 2025, with a deadline of 1 February 2027.
Is the threshold the same for every type of business?
Yes. The SAR 375,000 mandatory and SAR 187,500 voluntary thresholds apply to resident businesses generally. Non-resident businesses follow different rules.