Tax compliance is one of the first things new companies in Saudi Arabia must get right. Here is a simple overview of VAT and Zakat for new businesses.
What is VAT?
Value Added Tax applies to most goods and services in the Kingdom. Businesses above the mandatory registration threshold must register with ZATCA, charge VAT on sales and file regular returns.
What is Zakat?
Zakat is an annual obligation for Saudi and GCC-owned businesses, calculated on the Zakat base. Foreign-owned shares are generally subject to corporate income tax instead.
Filing and deadlines
- Register with ZATCA as soon as you meet the threshold
- File VAT returns monthly or quarterly depending on turnover
- Submit your annual Zakat or tax declaration on time
- Issue ZATCA-compliant e-invoices
Late registration and late filing both attract penalties — set reminders from day one.
How we help
Our team registers you, prepares returns and keeps your records audit-ready. See our Tax & Zakat service.
