Saudi Arabia · ZATCA VAT-02
Saudi Arabia VAT Return — box-by-box guide
Saudi Arabia introduced VAT at 5% in January 2018, then tripled the rate to 15% on 1 July 2020 as part of fiscal consolidation measures. The VAT-02 Return is filed with ZATCA (Zakat, Tax and Customs Authority) quarterly by most businesses, or monthly if annual revenue exceeds SAR 40 million. FATOORA e-invoicing has been mandatory since December 2021. HelloBooks generates FATOORA-compliant invoices and pre-populates every VAT-02 box from your ledger.
ZATCA VAT-02 — box reference
| Box | Label | What it includes |
|---|---|---|
| Box 1 | Standard rated domestic supplies (15%) | Total value of taxable supplies made in Saudi Arabia at the 15% standard VAT rate, net of VAT. Includes all domestic goods and services not zero-rated or exempt. |
| Box 2 | VAT on standard rated supplies | Output VAT charged on domestic standard rated supplies — Box 1 × 15%. This is the VAT collected from customers that is due to ZATCA. |
| Box 3 | Zero-rated supplies (exports, international transport) | Exports of goods outside the GCC, international freight and passenger transport, and certain services with non-Saudi beneficiaries. Taxable at 0%; input VAT on related costs is recoverable. |
| Box 4 | Exempt supplies | Supplies that fall entirely outside VAT (e.g. bare land, certain financial services, residential rental). Input VAT on directly attributable costs is not recoverable. |
| Box 5 | Standard rated domestic purchases | Total value of purchases made from Saudi-registered suppliers at 15% VAT. Used to compute your deductible input VAT. |
| Box 6 | Deductible input VAT | VAT paid on business purchases that can be offset against output VAT. HelloBooks applies apportionment for mixed taxable/exempt activities and flags reverse-charge obligations. |
| Net VAT | Net VAT due / (credit) | Box 2 minus Box 6. A positive balance is remitted to ZATCA by the filing deadline. A credit balance may be carried forward or applied for as a refund. |
Key facts for Saudi Arabia VAT
- Standard rate
- 15% (raised from 5% on 1 July 2020)
- Zero rate
- 0% — exports, international transport, qualifying services
- Filing frequency
- Quarterly (monthly if annual revenue exceeds SAR 40 million)
- Deadline
- Last day of the month following the tax period
- Registration threshold
- SAR 375,000 annual taxable turnover (mandatory)
- Voluntary threshold
- SAR 187,500 annual taxable turnover
- E-invoicing
- FATOORA mandatory since December 2021 (Phase 1 — generation)
- Filing portal
- ZATCA — Zakat, Tax and Customs Authority (zatca.gov.sa)
Page last reviewed: 2026-06-16.