Saudi Arabia / ZATCA & Tax Compliance
Know what applies.
Keep your filings on track.
ZATCA is the Zakat, Tax and Customs Authority. Start with your ownership and transactions, then organise the registrations, invoices and deadlines your business needs.
Sources checked 8 October 2026 · Official references & scope
01 / Start with your business
Four checks.
Not four taxes for every company.
A business can have more than one obligation. VAT is not a replacement for Zakat or income tax.
Ownership & tax status
Zakat
Generally relevant to Saudi ownership and qualifying GCC ownership. Review the ownership chain and applicable treatment.
Calculate the Zakat base—not simply a percentage of sales.
Zakat rules · PDF ↗ (opens in a new tab)Ownership & tax status
Corporate income tax
Generally applies to non-Saudi ownership shares in resident capital companies. Mixed ownership can mean both Zakat and income tax.
Confirm the taxable share and adjusted tax base.
Income-tax scope ↗ (opens in a new tab)Sales & purchases
VAT
Check taxable supplies and registration thresholds. The standard rate is 15%; the treatment of each supply still matters.
Separate standard-rated, zero-rated and exempt transactions.
Check registrationPayments to non-residents
Withholding tax
Certain Saudi-source payments to non-residents require withholding. Check the payment category before paying an overseas supplier or parent company.
Confirm the rate and any treaty conditions; not every foreign payment is treated alike.
Withholding guide · PDF ↗ (opens in a new tab)Need a separate review? Related-party transactions, imports, excise goods, real estate and special tax incentives can add requirements. This is a starting guide, not a complete tax assessment.
02 / Before you issue the invoice
Registration first.
The right invoicing setup alongside it.
A CR or general ZATCA account does not, by itself, confirm VAT registration.
Resident businesses / VAT thresholds
Mandatory threshold
Taxable supplies exceed this in the previous 12 months—or are expected to in the next 12 months.
Voluntary threshold
Taxable supplies or qualifying taxable expenses exceed this over the relevant past or expected 12-month period.
Use taxable supplies, not profit. Non-residents and other special cases have separate rules.
Registration tests · PDF ↗ (opens in a new tab)FATOORAH / E-invoicing
- 01
Generate & store
Resident VAT taxpayers in scope must use a compliant electronic solution. Phase 1 has applied since 4 December 2021.
- 02
Integrate when required
Phase 2 connects the solution to ZATCA. It is rolled out in waves, with at least six months’ notice. Check your company’s notice and deadline.
Do not wait for a Phase 2 notice to meet Phase 1. Non-resident taxpayers are excluded from this e-invoicing scope.
Check the roll-out ↗ (opens in a new tab)ZATCA’s provider list is indicative—not an exclusive approval list. Check your invoice types, applicable phase and record storage with the provider.
Solution requirements ↗ (opens in a new tab)03 / Make it a working routine
Set it up once.
Keep the records moving.
- 01 / Set up
Confirm the profile
Check entity details, ownership, fiscal year, applicable registrations and who receives ZATCA notices.
- 02 / Record
Capture the evidence
Keep invoices, credit notes, contracts, bank records and cross-border payment details together.
- 03 / Reconcile
Review the numbers
Match books, invoices and payments. Resolve differences before preparing each return.
- 04 / File & pay
Close the period
Submit the return, settle amounts due and retain the submission and payment confirmations.
04 / Put the dates in your diary
Different obligations.
Different filing clocks.
Standard deadlines below. Check your assigned period and the due date shown in ZATCA.
VAT / Quarterly returns
Every 3 monthsStandard filing cycle for annual revenues up to SAR 40 million. Usual filing & payment deadlines:
- Jan–Mar
- 30 April
- Apr–Jun
- 31 July
- Jul–Sep
- 31 October
- Oct–Dec
- 31 January following year
Above SAR 40 million? File monthly and pay by the end of the following month. Confirm your assigned period and due dates in ZATCA.
VAT filing rules · PDF ↗ (opens in a new tab)Withholding / Relevant payment month
First 10 daysFile and pay within the first ten days of the month after making a payment subject to withholding.
Assess the payment when it happens—not at year-end. Additional annual reporting may apply.
Withholding deadlines · PDF ↗ (opens in a new tab)Zakat & income tax / Year-end
120 daysAnnual returns are generally due within 120 days after the relevant year-end.
Plan the year-end accounts and amounts due. Advance payments and special regimes need separate checks.
Annual filing guidance ↗ (opens in a new tab)Review ZATCA notices, changed ownership and new transactions. Keep supporting records for the applicable retention period and answer authority requests by their stated deadlines.
From obligations to a manageable routine
Know the next filing.
Know who is handling it.
DuVolks can help organise records, preparation and follow-up within an agreed scope. You provide complete business information; ZATCA makes official determinations.
Official references & review scope Checked 8 October 2026
Targeted review of general ownership-based obligations, resident VAT thresholds, the e-invoicing phases and standard filing dates. Practical preparation steps are DuVolks guidance, not an official application checklist.
Not a company-specific tax opinion or a review of every exemption, incentive, treaty, retention rule or penalty. Confirm the treatment of your actual ownership, transactions and registration with a qualified adviser.
Source links open separately. PDF references are labelled. Check the actual registration and notices in your ZATCA account before relying on a filing date.