Company Setup

ZATCA Tax Registration in Saudi Arabia (VAT, CIT, Zakat)

ZATCA registration is automatic upon CR issuance for foreign-owned entities, but VAT, e-invoicing and corporate tax filing require active configuration. E-invoicing (Phase 2) is mandatory for all VAT-registered businesses since 2023.

What is zatca registration in Saudi Arabia? ZATCA (Zakat, Tax and Customs Authority) registration enrols a Saudi entity in the tax system: 15% VAT (for revenue >SAR 375K/year), 20% Corporate Income Tax (for foreign-owned), Zakat (for Saudi/GCC-owned) and the e-invoicing (Fatoora) system.

ZATCA Registration — operational guide

ZATCA (Zakat, Tax and Customs Authority) registration enrols a Saudi entity in the tax system: 15% VAT (for revenue >SAR 375K/year), 20% Corporate Income Tax (for foreign-owned), Zakat (for Saudi/GCC-owned) and the e-invoicing (Fatoora) system.

ZATCA registration is automatic upon CR issuance for foreign-owned entities, but VAT, e-invoicing and corporate tax filing require active configuration. E-invoicing (Phase 2) is mandatory for all VAT-registered businesses since 2023.

Tamra runs zatca registration as a managed step inside every entity setup — including portal interactions, fee payments and inter-authority coordination.

Key facts

StepZATCA Registration
CostFree registration. VAT and CIT filings are quarterly/annual. Penalties for non-compliance start at SAR 5,000 + 5% of unpaid tax per month.
TimelineAuto-enrolled at CR issuance. VAT activation: 7–14 days. E-invoicing onboarding: 2–4 weeks.
AuthorityMISA / MoC / ZATCA / GOSI / Chamber

Process — step by step

Auto-enrolled at CR issuance. VAT activation: 7–14 days. E-invoicing onboarding: 2–4 weeks.

  1. Auto-enrolment via CR. ZATCA auto-receives the CR and creates a tax file with the entity's 300-series tax number.
  2. VAT registration. Mandatory if expected annual revenue exceeds SAR 375,000. Voluntary above SAR 187,500. Application via ZATCA portal.
  3. E-invoicing onboarding. Integrate the entity's invoicing system with ZATCA Fatoora via a Saudi-certified solution provider. Phase 2 is mandatory for all VAT-registered businesses.
  4. Corporate Income Tax setup. 20% CIT applies to foreign shareholders' share of profits. Annual CIT return filed by 31 March of the following year.
  5. Zakat calculation. Zakat (2.5% of zakat-able base) applies to Saudi/GCC shareholders' share. Mixed entities file both CIT and Zakat.

Documents required

  • Issued CR
  • Bank account details
  • Authorised signatory's Iqama and POA
  • Audited opening balance sheet (for capital validation)
  • ZATCA-approved e-invoicing solution provider contract

Common mistakes

  • Operating above SAR 375K/year without registering for VAT — backdated VAT + 50% penalty
  • Issuing non-Fatoora invoices after e-invoicing Phase 2 cutoff — SAR 5,000 per non-compliant invoice
  • Confusing CIT with Zakat — wrong filing triggers full audit
  • Late annual CIT/Zakat filing — 1% of declared tax per 30 days, capped at 25%

Frequently asked questions

What is the corporate tax rate in Saudi Arabia?

20% on the foreign shareholders' share of profits. Saudi/GCC shareholders pay 2.5% Zakat instead. Mixed entities file both.

Is VAT mandatory for all companies?

Mandatory above SAR 375,000 annual revenue. Voluntary above SAR 187,500. Below that threshold, no registration is required.

Does Tamra handle ZATCA filings?

Tamra handles VAT and CIT/Zakat filings as part of the managed accounting service for entity clients. We work with ZATCA-certified e-invoicing providers.

Does Tamra handle this end-to-end?

Yes. Tamra manages this as a step inside the entity setup, with all portal interactions, fee payments and inter-authority coordination handled by our local team.

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