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Compendium · Middle-East · Saudi Arabia

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Saudi Arabia: VAT on digital services

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Not supported by the free-threshold API · Local term: VAT

Last verified: 2026-10-29

Non-resident suppliers of electronic services to non-VAT-registered persons in Saudi Arabia must register with ZATCA from the first taxable supply (no turnover threshold) and charge 15% VAT. Supplies to VAT-registered Saudi customers are generally reverse-charged. Electronic marketplaces facilitating non-resident supplies may be deemed the supplier under Art. 47 Implementing Regulations (as amended Nov 2024)

Not supported by the free-threshold API: why

No free threshold for non-resident e-services to non-registered customers

Spot a mistake in Saudi Arabia’s rules?

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Threshold and rates (VAT)

Free threshold?
No — No free threshold for non-resident e-services to non-registered customers
Amount / measure
SAR 0
No turnover threshold for non-residents making taxable supplies in KSA — register upon first taxable supply (VAT Law / Implementing Regulations; ZATCA e-commerce guidance)
Window
No threshold (from the first sale)
Standard rate
15.0%
Standard VAT 15% (raised from 5% on 1 Jul 2020). Applies to taxable electronic services used/enjoyed in KSA
Who must register
Non-resident suppliers of electronic services to customers in KSA who are not VAT-registered (and marketplaces deemed to supply in their own name under Art. 47 IR). B2B to VAT-registered persons: reverse charge by the customer
Evidence of location
Location based on use and enjoyment in the Kingdom. ZATCA e-commerce guideline discusses customer location indicators; a single mandatory two-evidence checklist is not quoted here from official English text as of 2026-10-29 — keep billing address, IP, and Saudi payment indicators
Invoicing
Charge 15% VAT on in-scope B2C electronic services once registered. E-invoicing (Fatoora) obligations for non-residents: follow ZATCA phase rules applicable to your registration; details beyond the e-commerce guideline are not fully restated here as of 2026-10-29
Filing
Standard VAT return cycle for registrants (typically quarterly or monthly depending on ZATCA assignment). Exact digital-non-resident deadlines: follow the return schedule on the ZATCA taxpayer portal after registration. Not specified in official English guidance as of 2026-10-29 for a special shortened digital-only calendar beyond the general rules
Effective
VAT in KSA from 1 Jan 2018; rate 15% from 1 Jul 2020. E-commerce / marketplace deeming rules clarified in Implementing Regulation amendments (Board Resolution 01-06-24, 19 Nov 2024) and ZATCA Guideline on Electronic Commerce
Authority
Zakat, Tax and Customs Authority (ZATCA)

What Botchannels returns

Ruleset version
2026-10-22.v1
Decision summary
Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
Product class
Digital service
Support status
Not supported by the free-threshold API — No free threshold for non-resident e-services to non-registered customers

How to register

Self-register online?
Yes — Non-residents register for VAT with ZATCA (no separate “digital-only” tax, but non-resident registration without a KSA establishment is available). Register from the first taxable supply — no threshold
Resident representative / fiscal agent
Not generally mandatory solely for non-resident electronic-services VAT under English ZATCA materials reviewed; marketplace deeming (Art. 47 IR) may shift liability to a resident marketplace
Regime
ZATCA VAT registration for non-residents supplying electronic services used/enjoyed in KSA

Steps (in order)

  1. Confirm the supply is an electronic service used/enjoyed in KSA by a non-VAT-registered customer (or marketplace deemed-supplier rules)
  2. Register for VAT on ZATCA eServices from the first taxable supply — https://zatca.gov.sa/en/eServices/Pages/default.aspx
  3. Charge 15% VAT on in-scope B2C; file and pay per ZATCA schedule. B2B to VAT-registered Saudi customers: reverse charge

Documents

Official processing time
Not published as a single official English service-level time as of 2026-10-29
Official fees
No ZATCA registration fee stated in the English eServices materials reviewed
Portal
https://zatca.gov.sa/en/eServices/Pages/default.aspx
Local bank account
Pay via ZATCA payment channels
Filing frequency
Per ZATCA-assigned VAT return period
Payment currency
SAR
Input VAT recovery
Limited for typical non-resident electronic-services registration — confirm with ZATCA
Portal language
Arabic and English
Penalties
ZATCA late registration/filing/payment penalties

Firms offering this service

Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging

Official sources

ZATCA — Implementing Regulations of the VAT Law (EN)
ZATCA — Amendments to VAT IR (Board Res. 01-06-24, Nov 2024)
ZATCA — Guideline on Electronic Commerce under VAT
Saudi Arabia registration / authority portal

Last verified: 2026-10-29.

FAQ

Is there a free VAT/GST threshold for foreign digital sellers?
No — register from the first taxable supply
Is a local tax representative mandatory?
Not generally mandatory for the non-resident electronic-services registration itself as of 2026-10-29; check marketplace deeming
What rate applies?
15% standard VAT
Is this tax advice?
No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice