Saudi Arabia VAT Return Filing 2025 – Complete Step-by-Step Guide for Businesses

Updated for 2025 • VAT in Saudi Arabia • KSA VAT Return Online Filing

With the continuous business growth in Saudi Arabia, VAT Return Filing 2025 in KSA has become crucial for companies to stay tax-compliant and avoid penalties. Whether you are a Saudi company, a foreign entity operating in KSA, or an e-commerce seller, understanding the correct VAT filing process in Saudi Arabia is essential.

In this blog, we cover who must file VAT returns, deadlines, step-by-step VAT filing guidance on ZATCA portal, common mistakes, penalties and expert compliance tips based on the latest 2025 regulations.

Who Must File VAT Returns in KSA?

Businesses in Saudi Arabia are classified based on annual revenue:

Category VAT Requirement Revenue above SAR 375,000 Mandatory VAT Registration & Return Filing Revenue SAR 187,500 – 375,000 Voluntary VAT Registration Foreign companies operating in Saudi Arabia VAT Registration Compulsory

VAT Return Filing Deadlines 2025

VAT filing depends on the annual taxable supplies:

Annual Sales VAT Return Frequency Due Date Above SAR 40 Million Monthly Return Last day of the following month Below SAR 40 Million Quarterly Return End of the month following the VAT quarter

Tip: Always file your VAT return even if there is no sales or no input VAT — otherwise ZATCA may impose penalties.

Step-by-Step Process: VAT Return Filing in KSA 2025

Follow these steps to file VAT on ZATCA portal:

Step 1 – Log in to ZATCA Portal

Login using ZATCA credentials / National ID / Absher login.

Step 2 – Open VAT Return

Go to: Returns → VAT → File Return

Step 3 – Enter Output VAT (Sales)

Declare:

• Standard-rated supplies (15%)

• Zero-rated supplies

• Exempt supplies

• Export of goods/services

Step 4 – Enter Input VAT (Purchases)

Include deductible VAT paid on:

• Local purchases

• Imports through customs

• Reverse charge transactions

Step 5 – Review VAT Payable or Refund

VAT Payable = Output VAT – Input VAT
If Input VAT > Output VAT, you are eligible for a VAT Refund Claim.

Step 6 – Submit Return & Make Payment

For payable VAT, generate SADAD bill and complete payment before the due date.

Common VAT Filing Mistakes to Avoid in 2025

❌ Claiming VAT on non-deductible expenses
❌ Incorrect export classification
❌ Missing import VAT from customs
❌ Mismatch in purchase invoices & e-Invoicing Fatoora compliance
❌ Late VAT filing / delayed payments

VAT Penalties in Saudi Arabia (Latest 2025)

Compliance Issue Penalty Late VAT Return Filing 5% to 25% of VAT due Late VAT Payment 5% to 25% of VAT due Incorrect Return Up to 50% of difference Non-registration SAR 10,000 No tax invoice under e-Invoicing Penalties per violation

How Businesses Can Stay Compliant in 2025

✔ Maintain proper e-invoicing (Fatoora) system
✔ Reconcile sales, purchases & customs data monthly
✔ Review VAT input eligibility before claiming
✔ File return before the due date to avoid penalties
✔ Consult tax experts in complex transactions

Need Professional Support for VAT Filing in Saudi Arabia?

We assist with:

• VAT Registration

• Monthly / Quarterly VAT Return Filing

• VAT Refund Claims

• ZATCA Audit Assistance

• Corporate Tax Advisory

📞 WhatsApp: +971524778300 / +91 8318147596 based on your region
📧 Email:mfkhan.associates@gmail.com
🌐 Visit: www.camfkhan.com

About the Author

CA M. F. Khan – Tax Expert (UAE | KSA | GCC)
Specialized in Corporate Tax, VAT, Transfer Pricing & International Taxation with extensive experience supporting businesses across the UAE, Saudi Arabia, Qatar & India.

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