Saudi Arabia · ZATCA VAT Return
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 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 box of the VAT return from your ledger.
ZATCA VAT Return — 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.