VAT Registration in Saudi Arabia with ZATCA, and E-Invoicing

Who must register for VAT

Any business whose taxable supplies exceed 375,000 SAR over 12 months, or are expected to exceed it over the next 12 months, must register for VAT. A business whose taxable supplies or expenses exceed 187,500 SAR may register voluntarily, which some businesses choose so they can recover input VAT on their purchases.

Tax registration usually follows the commercial registration: the establishment's zakat or income tax file is opened according to its type, and VAT comes into play once the threshold is reached. The threshold is measured over any 12 consecutive months, not only the financial year, so revenue should be tracked monthly so the registration deadline is not missed.

Registering late after passing the mandatory threshold exposes the business to a fine, on top of the VAT due for the earlier period. Register within the statutory period after crossing the threshold.

Documents and information required

• A valid commercial registration and the establishment's basic details.
• The ID of the owner or authorised manager, with an account on the ZATCA portal.
• The establishment's national address and contact details.
• The establishment's bank account details.
• The value of taxable supplies over past months or as expected, with supporting evidence.
• The activities, start date and type of supplies, including whether any are exempt or zero-rated.

Steps to register for VAT

1. Sign in to the ZATCA portal

   The owner or delegate signs in to the establishment's account on the Zakat, Tax and Customs Authority portal.

2. Choose the registration type

   Mandatory or voluntary registration is selected based on the value of supplies.

3. Enter the details

   Establishment, activity, supply and bank details are entered and the required documents attached.

4. Review and approval

   ZATCA reviews the application and issues the VAT number and registration certificate once approved.

5. Prepare invoicing

   Invoices are updated to show the VAT number and issued from a compliant e-invoicing system.

E-invoicing (Fatoora) and its phases

E-invoicing is mandatory for VAT-registered businesses and is applied in two phases. The generation phase began on 4 December 2021 and requires invoices to be issued and stored electronically from a compliant system, with no handwritten invoices. The integration phase is applied in waves, with ZATCA notifying targeted businesses in advance so they can connect their systems to the Fatoora platform.

ZATCA has lowered the wave threshold step by step. In July 2026 it announced the 25th wave, covering taxpayers whose VAT-subject revenue exceeded 187,500 SAR in any of 2022 to 2025, with an integration deadline of 1 February 2027. Any registered business should therefore make sure its invoicing system can integrate before the date given in ZATCA's notice.

VAT returns, timing and cost

After registering, a business files VAT returns monthly if its annual taxable supplies exceed 40 million SAR, and quarterly otherwise, and the return is filed and any tax paid by the end of the month following the period. Late filing or payment carries fines, so it is best to keep the books up to date every month.

How Grow More handles your VAT registration

Grow More is an independent private office, not a government body. We review the value of your supplies with you to decide whether registration is mandatory or voluntary, then complete the registration on the ZATCA portal under a delegation or power of attorney that you control and can revoke at any time, and explain the e-invoicing requirements and return deadlines. We never ask for your Absher or Nafath password or the verification codes sent to your phone.

We agree a fixed price with you before starting and quote it on WhatsApp, any government fees are paid at cost with receipts, and you pay our fee when the work is done. You get a status update at every step, in Arabic or English, and we serve businesses in Riyadh, Jeddah and Dammam. For ongoing returns and bookkeeping, we recommend a licensed accountant who keeps your books monthly.