Steps to Register for VAT in Saudi Arabia 2026

Value Added Tax (VAT) is an indirect tax applied by the Kingdom of Saudi Arabia at a rate of 15% on most goods and services. If your business exceeds the registration threshold set by the Zakat, Tax and Customs Authority (ZATCA), you are required to register for VAT. In this article, we explain everything you need to know about registering for VAT.

Who Must Register for VAT?

The Zakat, Tax and Customs Authority divides registration into two types:

First: Mandatory Registration
You must register if the value of your taxable supplies over the past 12 months exceeds SAR 375,000, or if it is expected to exceed this threshold in the next 12 months.

Second: Voluntary Registration
If your taxable supplies are between SAR 187,500 and SAR 375,000 annually, you may voluntarily register. Voluntary registration is beneficial for small businesses expecting growth or those dealing with VAT-registered companies and wishing to reclaim input tax.

Required Documents for Registration

Before starting the registration process, ensure you have the following documents ready:

  • Valid Commercial Registration (CR)
  • Bank account details (IBAN)
  • National Address (from Saudi Post)
  • Contact details (mobile number – email)
  • Tax registration of partners or owners (if applicable)
  • Electronic power of attorney from an accounting firm (if using a legal accountant)

Step-by-Step Registration Process

Step 1: Access the Zakat, Tax and Customs Authority Portal
Go to zatca.gov.sa, then select “Electronic Services,” followed by “VAT Registration.”

Step 2: Log in via National Access
You will need an “Absher” account to log in via the National Unified Access. If you represent a business, use your business account in “Absher Ajeer.”

Step 3: Fill in Basic Information
Enter your business information: company name, economic activity, commercial registration number, and national address.

Step 4: Specify Activity Type and Supplies
Specify the nature of your supplies (goods or services) and the expected annual supply value. This helps the authority determine the tax calculation method.

Step 5: Upload Documents
Upload electronic copies of the required documents (commercial registration, ID, etc.).

Step 6: Review and Confirm
Review all entered data, then submit the application. You will receive a confirmation message on your registered email.

Step 7: Wait for Approval
The review process typically takes 5 to 15 business days. You can track your application status via the electronic services portal.

When Do You Become Actively Registered?

After your application is approved, the authority will issue a VAT registration certificate, which includes:

  • VAT Registration Number
  • Registration start date
  • Method of submitting returns (monthly or quarterly)

From the registration date, you must issue tax invoices including the VAT number, collect VAT at 15% on your sales, and submit tax returns on time.

Penalties for Non-Registration

The authority imposes financial penalties on violators of the VAT system:

  • Failure to register mandatorily: A fine of up to SAR 50,000
  • Delay in registration: A fine of up to 5% of the due tax for each month of delay
  • Failure to submit returns: A fine ranging from 5% to 25% of the tax amount

Frequently Asked Questions About Registration

In Value Added Tax

Q: Can I register if my activity does not exceed 187,500 SAR?
A: No, the minimum optional registration threshold is 187,500 SAR annually. If your supplies are less than that, you are not obligated to register, and you are not entitled to register unless your activity involves importing goods subject to tax.

Q: How long does the registration process take?
A: 5 to 15 business days after submitting a complete application with all required documents.

Q: Do I need an accountant to register?
A: You can register yourself through the electronic portal. However, it is advisable to seek the assistance of a legal accountant if your activity is complex or you have multiple supplies.

Q: What if my registration application is rejected?
A: You can apply for a reconsideration request or address any deficiencies in the documents and resubmit.

Q: Is registration free?
A: Yes, registration for Value Added Tax is free, and there are no fees for the registration application.

Summary

Registering for Value Added Tax is a fundamental step for any commercial entity in Saudi Arabia that exceeds the specified supply threshold. The process is straightforward and can be completed entirely online via the ZATCA website. The most important thing is not to delay registration to avoid financial penalties. Make sure to prepare your documents in advance and follow up on your application until you receive your tax number. After registration, do not forget to submit your tax returns on time to remain compliant with the authority.