How to Register with ZATCA in 2026: A Complete Step-by-Step Guide
18 hours ago
Are you looking for a comprehensive guide to registering with the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia?
At HR360 Solutions, we present this complete guide to ZATCA registration, covering everything you need to know about Zakat registration, Value Added Tax (VAT), e-invoicing (Fatoora), required documents, practical steps, and penalties for non-compliance.
- Step-by-step ZATCA registration process for new businesses.
- VAT registration requirements and mandatory thresholds.
- E-invoicing requirements and integration with the ZATCA platform.
- Required documents and common mistakes to avoid.
- Penalties and fines for late registration or non-compliance.
Need help with ZATCA registration and avoiding penalties?
What is ZATCA (Zakat, Tax and Customs Authority)?
The Zakat, Tax and Customs Authority — commonly known as ZATCA — is the Saudi government body responsible for regulating Zakat, taxes, and customs affairs in the Kingdom. The authority was established by merging the General Authority of Zakat and Income Tax with the Saudi Customs Authority, undertaking three pivotal roles: collecting government revenue, ensuring tax and Zakat compliance, and facilitating international trade through customs ports.
The authority implements Zakat provisions based on Royal Decree No. (M/40) issued in 1405 AH, subsequent executive regulations, and the new executive regulations issued under Ministerial Resolution No. 1007 in February 2024, applicable to fiscal years starting from January 1, 2024 onwards.
Registering with ZATCA is not merely an administrative procedure — it is the foundational step that determines a business’s Zakat, tax, and customs obligations throughout its operational lifecycle. Without it, a business cannot issue approved tax invoices or qualify for government tenders.
Why is ZATCA Registration a Non-Deferrable Obligation?
No business establishment in the Kingdom is complete without proper and early ZATCA registration. Here are the reasons that make this step mandatory and strategic:
- Legal Compliance: The Zakat and Tax Law obligates every establishment to register before the end of its first fiscal year.
- Invoice Issuance: Approved tax invoices cannot be issued without obtaining the Tax Identification Number (TIN).
- Government Tenders: Zakat registration certificate is a prerequisite for participating in government tenders and transactions.
- Avoiding Penalties: Delay in registration or filing returns exposes the establishment to financial penalties reaching SAR 100,000.
- E-Invoicing: Integration with the Fatoora platform has become mandatory for businesses exceeding specified thresholds.
Types of Registration with ZATCA
Zakat Registration Mandatory
Zakat applies to every activity intended for profit from money or work. Registration is automatic upon commercial registration issuance, and data must be completed through the ZATCA portal.
Value Added Tax (VAT) Threshold Based
Registration is mandatory if revenues exceed SAR 375,000 annually, and voluntary between SAR 187,500 and SAR 375,000. The current rate is 15%.
E-Invoicing Mandatory
The Fatoora system requires electronic invoice issuance and integration with ZATCA. Phase 2 requires real-time integration for medium and large businesses.
Excise Tax
Levied on goods harmful to public health such as soft drinks, tobacco, and energy products. Separate registration is required if the activity includes these goods.
Steps to Register with ZATCA
Here are the detailed steps to register with ZATCA, from start to finish until receiving the registration certificate:
1. Complete Ministry of Commerce Registration
Before dealing with the authority, the establishment must be officially registered with the Ministry of Commerce and obtain the commercial registration. Upon completion, a Tax Identification Number (TIN) is automatically created for the establishment — this is the primary number for all subsequent transactions.
2. Access the ZATCA Electronic Portal
Services are available through the official portal zatca.gov.sa after logging in using the establishment’s credentials registered with the National Single Sign-On. The authorized person must have an active Absher account linked to their residency or national ID.
3. Select the Appropriate Registration Type
The portal provides a comprehensive list of Zakat, tax, and customs services. In the initial registration stage, the establishment chooses between:
- Zakat registration (mandatory for Saudi companies)
- Value Added Tax registration (mandatory or voluntary based on revenue)
- Excise Tax registration (if the activity includes covered goods)
4. Fill Out the Registration Form
The form includes the establishment’s basic data: trade name, tax number, owner details, business activity, approved fiscal year, and banking details (IBAN). The authority requires all documents to be submitted in Arabic.
5. Upload Required Documents
Upload the following documents in clear PDF or JPG format:
- Valid commercial registration
- National ID card of the owner or authorized representative
- Rental contract or property deed for the office
- International Bank Account Number (IBAN)
- Official authorization (if someone else is completing the procedures on your behalf)
6. Review and Submit the Application
Review all data before submission. Then submit the application electronically without needing to visit field offices. The regulations obligate every taxpayer to register with the authority before the end of their first fiscal year, and update their data immediately upon any change in establishment ownership or legal form.
7. Receive Notifications and Certificate
After approval, the authority issues the Zakat or tax registration certificate and sends a notification to the establishment. From that moment, tax invoices can be issued and periodic returns filed on time. The review process usually takes 5-10 business days for complete applications.
VAT Registration Threshold
VAT registration with ZATCA varies depending on revenue size and activity nature:
| Annual Revenue Level | Registration Type | Details |
|---|---|---|
| More than SAR 375,000 | Mandatory | Must register immediately upon exceeding the threshold within the last 12 months |
| SAR 187,500 – SAR 375,000 | Voluntary | Registration allowed to benefit from input tax deduction |
| Less than SAR 187,500 | Not Allowed | Cannot register unless revenues exceed the minimum threshold |
Note: The applicant for tax must be resident in the Kingdom’s territory, and the value of taxable supplies must exceed the specified amount within the last 12 months. The effective registration date must not exceed the first day of the tax period following the month in which the threshold is exceeded.
E-Invoicing and Integration with ZATCA
E-invoicing (Fatoora) is one of the most important requirements for ZATCA registration in 2026. The system requires electronic invoice issuance and integration with the ZATCA platform, implemented in two phases:
Phase 1 (Generation Phase) – Completed
- Electronic invoice issuance in PDF or XML format.
- Adding QR code on simplified invoices.
- Electronic invoice storage for at least 6 years.
Phase 2 (Integration Phase) – Ongoing
- Real-time Integration: Invoices must be sent to ZATCA for validation immediately upon issuance.
- Simplified Invoices (B2C): Must be reported within 24 hours.
- Tax Invoices (B2B/B2G): Must receive ZATCA approval before sending to the customer.
- Electronic Signature: Using the Cryptographic Stamp Identifier (CSID) from ZATCA.
| Wave | Minimum Revenue Threshold | Deadline |
|---|---|---|
| Wave 23 | More than SAR 750,000 | March 31, 2026 |
| Wave 24 | More than SAR 375,000 | June 30, 2026 |
Required Documents for ZATCA Registration
Documents vary by registration type, but here is the comprehensive checklist:
| Document | Details | Notes |
|---|---|---|
| Commercial Registration | Valid copy of commercial registration | Activity must match the registration |
| ID Card | Copy of national ID or residency for owner/representative | Must be valid |
| Rental Contract/Title Deed | Proof of main office address | Attested by relevant authorities |
| Bank Account Number (IBAN) | International bank account number for the establishment | For payment and refund purposes |
| Financial Statements | Last year’s financial statements (for existing companies) | Audited by a legal accountant |
| Authorization Letter | If registration is done through an agent or representative | Attested by relevant authorities |
| Contact Details | Active email and mobile number for receiving notifications | Must be kept updated |
Penalties and Fines for Non-Compliance
Delay in registering with ZATCA or non-compliance with filing requirements exposes the establishment to severe financial penalties:
| Violation | Penalty |
|---|---|
| Failure to register for VAT | SAR 10,000 |
| Delay in submitting Zakat return | Financial fines + estimated base |
| Late payment | 5% monthly of the amount due |
| Submitting forged documents | 3 times the value of goods/services |
| Failure to integrate with e-invoicing | Suspension of invoice issuance + fines |
Common Registration Mistakes and How to Avoid Them
Entering Mismatched Data
Data not matching the commercial registration causes application rejection. Solution: Review data carefully and ensure it matches all documents.
Using an Inactive Email
The email used for registration is the official communication channel. Solution: Use an active professional email and check it regularly.
Delaying Document Upload
Uploading poor quality or incomplete documents delays approval. Solution: Upload clear and complete documents immediately upon application submission.
Forgetting to Update Revenue
Not updating actual revenues after registration causes discrepancies in returns. Solution: Update financial data regularly and submit accurate returns.
ZATCA Electronic Services
The Zakat, Tax and Customs Authority digital portal provides integrated services including:
- Zakat Registration: Issuing certificates immediately after approval.
- Return Filing: Annual Zakat return and periodic VAT return.
- Payment Scheduling: Installment of financial obligations based on capacity.
- Due Tracking: Knowing due dates and amounts owed.
- Objections: Submitting settlement requests on filed objections.
- E-Invoicing: System integration and invoice management.
- Customs: Managing customs data and clearances.
Difference Between Zakat and Tax
| Element | Zakat | Value Added Tax |
|---|---|---|
| Type | Religious right on wealth | Indirect tax on consumption |
| Calculation Rate | 2.5% of capital and profits | 15% of supply value |
| Covered Establishments | Saudi and GCC companies | All establishments exceeding the threshold |
| Return Filing | Annual (within 120 days) | Monthly or quarterly |
| Refund | Not available | Possible (input tax) |
Need help calculating your Zakat base or preparing tax returns?
ZATCA Registration by Business Type
ZATCA registration requirements vary depending on the nature of the commercial activity. Here is a quick guide for the most common business types:
Contracting Companies
The contracting sector is among those requiring early tax compliance due to government tenders. If you are establishing a contracting company in Saudi Arabia, ZATCA registration must be completed immediately after commercial registration issuance, as the Zakat registration certificate is a prerequisite for classification on the Balady platform and government tenders.
Engineering Consulting Companies
Engineering consulting companies require precise tax registration due to the nature of extended contracts and major projects. The Saudi Council of Engineers requires the Zakat registration certificate as a condition for obtaining the professional practice license.
Tourism Companies
Tourism and travel companies are subject to clear VAT on booking and organization services. VAT registration is mandatory if revenues exceed SAR 375,000, and voluntary registration is recommended to benefit from input tax recovery on operating costs.
Frequently Asked Questions About ZATCA Registration
What are the steps to register with ZATCA?
Registration steps: 1) Complete Ministry of Commerce registration, 2) Access zatca.gov.sa via National Single Sign-On, 3) Select registration type, 4) Fill out the form, 5) Upload documents, 6) Wait for approval and receive the certificate.
What documents are required for ZATCA registration?
Required documents: Commercial registration, ID card, rental contract/title deed, bank account number (IBAN), and official authorization if applicable. All must be in Arabic.
What is the minimum threshold for VAT registration?
The mandatory registration threshold is exceeding SAR 375,000 annually. Voluntary registration is available for businesses between SAR 187,500 and SAR 375,000.
What are the penalties for late ZATCA registration?
Failure to register penalty is SAR 10,000, late payment penalty is 5% monthly, and imposing tax without registration reaches SAR 100,000.
What is e-invoicing and when must businesses connect to ZATCA?
E-invoicing (Fatoora) is a mandatory system for electronic invoice issuance. Real-time integration (Phase 2) is required for businesses exceeding SAR 375,000 before June 30, 2026.
Can businesses benefit from the 2026 penalty waiver initiative?
Yes, the ZATCA initiative covers January 1 to June 30, 2026, and includes waiver of late registration, late payment, return correction, and field inspection fines.
How long does ZATCA registration take?
The registration process takes 5-10 business days for complete and accurate applications. Incomplete applications requiring additional review may take longer.
Start Your ZATCA Registration with Confidence Through HR360
If you are looking for a specialized partner to help you with ZATCA registration, HR360 Solutions offers comprehensive services including:
- Document preparation and data review before submission.
- Zakat and Value Added Tax registration.
- Integration with the e-invoicing system (Fatoora).
- Preparation of periodic Zakat and tax returns.
- Follow-up with ZATCA and resolution of any objections.
- Benefiting from the 2026 penalty waiver initiative.
Our team of Zakat and tax experts is ready to support you at every step, from initial registration to annual filing.
