Whether you’re currently operating or planning to launch a business in Saudi Arabia, mastering VAT and Corporate Tax compliance in 2025 isn’t just a legal obligation—it’s critical for establishing a sustainable, low-risk enterprise.

 

What is VAT in Saudi Arabia?

VAT (Value Added Tax) is mandatory in Saudi Arabia for businesses generating over SAR 375,000 annually in taxable supplies. Registration with ZATCA (Zakat, Tax and Customs Authority) is compulsory.

Key VAT Compliance Requirements:

  • Monthly or quarterly VAT return filing
  • Returns must match data from your e-invoicing system
  • ZATCA cross-verifies invoices with submitted returns in real-time

How to Ensure VAT Compliance in Saudi Arabia

Our services cover the full VAT lifecycle to ensure your business stays penalty-free and audit-ready.

Our VAT Compliance Support:

  • VAT Registration with ZATCA
  • Monthly or Quarterly Return Filing
  • Reconciliation with E-invoicing
  • ZATCA Correspondence
  • VAT Health Checks to identify red flags before audits

With audits becoming more frequent, proactive health checks ensure your data is accurate and aligned with Saudi Arabia’s evolving tax regulations.

Understanding Corporate Tax in Saudi Arabia

Saudi Arabia has introduced corporate income tax for certain types of entities, particularly those with foreign ownership. Depending on your company’s legal structure, even locally-owned businesses may fall under this tax regime.

Corporate Tax Support Services:

  • Assessment of Tax Applicability
  • Registration on ZATCA’s Corporate Tax Portal
  • IFRS-Compliant Financial Reporting
  • Tax Return Filing and Guidance
  •  Ongoing Advisory on Tax Compliance

Why VAT and Corporate Tax Compliance Matters

Failure to comply with Saudi tax laws can lead to:

  • Penalties and fines
  • Delays in business operations
  • Legal complications

Benefits of Staying Compliant:

  • Smoother business operations
  • Reduced risk during audits
  • Enhanced credibility with partners and regulators

Our End-to-End Services

Service

How We Help

VAT Registration

Complete guidance through ZATCA processes

VAT Returns

Monthly / Quarterly filings and reconciliations

E-invoicing Compliance

System setup and reconciliation with VAT returns

Corporate Tax Registration

Registration and portal setup

IFRS Financial Reporting

Fully compliant, audit-ready reports

ZATCA Correspondence

Managing notices, audits, and queries

VAT Health Checks

Pre-audit risk identification

Frequently Asked Questions (FAQs)

Who needs to register for VAT in Saudi Arabia?
Businesses with taxable supplies exceeding SAR 375,000 annually must register with ZATCA.
How often are VAT returns filed in Saudi Arabia?
VAT returns must be filed either monthly or quarterly, depending on turnover.
What is ZATCA’s role in VAT and Corporate Tax?
ZATCA manages tax registration, audits, e-invoicing compliance, and enforces corporate tax regulations in Saudi Arabia.
Do foreign-owned companies need to pay corporate tax in Saudi Arabia?
Yes, foreign-owned entities and certain legal structures are subject to corporate tax under Saudi regulations.
Why is VAT reconciliation important?
ZATCA verifies VAT returns against e-invoicing data. Errors in reconciliation can lead to audits or penalties.

Why Choose Us

Navigating Saudi Arabia’s tax regulations can seem complex. We simplify the process through:

  • Expertise in local compliance
  • End-to-end support from registration to audits
  • Transparent and reliable service delivery

If your business requires guidance on VAT, corporate tax, or audit readiness, we are here to help.