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  1. Madrous
  2. Setting up
  3. VAT and e-invoicing

Step 5 of 12 in the set-up journey

VAT and e-invoicing: when to register and when to integrate

The registration threshold, filing frequency, e-invoicing phases and the penalty waiver initiative, all taken from the pages of the Zakat, Tax and Customs Authority (ZATCA).

Last updated: 4 November 2026

When must you register for VAT?

  • Mandatory: if your taxable revenue or supplies exceed SAR 375,000 over 12 months [1][2].
  • Voluntary: if they are between SAR 187,500 and SAR 375,000 [1][2].
  • Fees: registration is free [1].

Check your position quickly with the VAT registration threshold calculator.

Filing frequency and deadlines

Returns are monthly if annual revenue exceeds SAR 40 million, and quarterly below that. The return is filed and paid by the last day of the month following the period [2][3].

Records must be kept for at least 6 years, with longer periods for capital assets and real estate [2].

E-invoicing (Fatoora): the two phases

  • Phase one (generation): since 4 December 2021, handwritten or spreadsheet invoices are not accepted, and invoices are issued electronically with a QR code [4].
  • Phase two (integration): systems are integrated with the Fatoora platform in waves, and each wave is notified at least 6 months in advance [4].
  • Wave 24: taxpayers whose taxable revenue exceeded SAR 375,000 in 2022, 2023 or 2024, with integration by 30 June 2026 [5].
  • Wave 25: taxpayers whose revenue exceeded SAR 187,500 in 2022 to 2025, with integration by 1 February 2027 [4].

The simplified invoice

A simplified tax invoice may be issued for supplies below SAR 1,000 or to customers who are not VAT-registered [2].

Penalty waiver initiative

The initiative waiving penalties for late registration, late payment, late filing and return corrections has been extended from 1 July to 31 December 2026. It does not cover tax evasion, or returns due after 30 June 2026. Its conditions include registering, filing all returns, and paying the principal tax, even in instalments [6].

Frequently asked questions

What is the mandatory VAT registration threshold?

SAR 375,000 of taxable revenue or supplies over 12 months; voluntary registration is possible from SAR 187,500 [1].

Is the VAT return monthly or quarterly?

Monthly for businesses with annual revenue above SAR 40 million, and quarterly for others [2].

When must I integrate with the Fatoora platform?

It depends on the wave you belong to; ZATCA notifies each wave at least 6 months in advance. Wave 25 covers those whose revenue exceeded SAR 187,500 in 2022 to 2025, with integration by 1 February 2027 [4].

Sources

  1. VAT registration serviceZakat, Tax and Customs Authority (ZATCA) · 2026-10-26
  2. Guideline for tax invoicing and records, version 3Zakat, Tax and Customs Authority (ZATCA) · 2026-05
  3. Zakat declaration and tax returns calendarZakat, Tax and Customs Authority (ZATCA) · accessed 2026-11-04
  4. Wave 25 of the integration phaseZakat, Tax and Customs Authority (ZATCA) · 2026-07-24
  5. Wave 24 of the integration phaseZakat, Tax and Customs Authority (ZATCA) · 2025-09-26
  6. Extension of the penalty waiver initiativeZakat, Tax and Customs Authority (ZATCA) · 2026-06-29

Sources last checked: 4 November 2026.