# Saudi VAT & ZATCA E-invoicing (Fatoora)

> Saudi VAT is 15%. Registration is mandatory above SAR 375,000 of annual taxable supplies and voluntary from SAR 187,500. Returns are monthly for larger businesses and quarterly for others. ZATCA's e-invoicing (Fatoora) requires VAT-registered businesses to issue electronic invoices and, in phased waves, integrate their systems with ZATCA's platform.

Practice: Saudi Arabia Business Services — https://www.industax.com/services/saudi-business/

Integration waves are notified by ZATCA based on revenue, with advance notice to each taxpayer. Systems must generate compliant XML invoices, QR codes and cryptographic stamps.

We assess readiness and coordinate with partner advisers and your software provider.

## Key facts

| Item | Detail |
| --- | --- |
| Rate | 15% |
| Mandatory threshold | SAR 375,000 |
| Voluntary threshold | SAR 187,500 |
| E-invoicing | Fatoora — generation and phased integration |

## Who needs this

- Saudi businesses above the threshold
- Companies notified for integration
- Foreign suppliers to Saudi consumers

## What's included

- Registration
- Return filing via partners
- E-invoicing readiness

## Documents

- Commercial registration
- Sales records
- Invoicing system details

## Process

1. **Register** — VAT registration with ZATCA.
2. **Comply** — Returns and e-invoices.
3. **Integrate** — System integration when notified.

Work that legally requires a licensed local adviser is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### When must my business integrate with Fatoora?

When ZATCA notifies your wave, typically giving several months' notice based on revenue thresholds.

### Are exports zero-rated?

Exports of goods and qualifying services to non-residents can be zero-rated, subject to evidence requirements.

### Do non-resident sellers need Saudi VAT registration?

Non-residents making taxable supplies in Saudi Arabia where the customer doesn't account for reverse charge may need to register regardless of the threshold.

## Official sources

- ZATCA — Zakat, Tax and Customs Authority: https://zatca.gov.sa/

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Canonical page: https://www.industax.com/services/saudi-business/saudi-vat-e-invoicing
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.