VAT for freelancers in Saudi Arabia
Saudi Arabia has no personal income tax, but self-employed people over the VAT threshold must register with ZATCA, charge 15% VAT and file returns. Here are the 2026 headline figures.
The key figures (2026)
- Standard VAT is 15% on most goods and services (raised from 5% in July 2020); some supplies are zero-rated or exempt.
- Registration is mandatory once your taxable turnover passes SAR 375,000 over 12 months; voluntary registration is allowed from SAR 187,500.
- Registered businesses file VAT returns with ZATCA — monthly if annual taxable supplies exceed SAR 40 million, otherwise quarterly.
- Saudi also mandates e-invoicing (Fatoora) — every tax invoice must be electronic and, in Phase 2, cleared with ZATCA. See our ZATCA e-invoicing guide.
Estimate your net VAT
VAT you charge on sales minus VAT you paid on expenses — for Saudi Arabia.
Saudi Arabia freelancers pay no personal income tax — this estimates your net VAT payable (VAT collected on sales minus VAT paid on expenses).
Net VAT payable
SAR 7,800
Effective rate 13.0% on SAR 60,000 revenue
Below the SAR 375,000 VAT registration threshold — registration may be voluntary.
Estimates use latest published figures (US 2025 brackets & 15.3% SE tax, UK Self Assessment bands + Class 4 NI, Canada federal + CPP, Germany §32a 2026 income tax + est. social & 19% VAT, GCC VAT rates). Simplified estimate for planning only — not tax advice.
Saudi Arabia VAT — FAQ
Do freelancers pay VAT in Saudi Arabia?
There is no personal income tax, but a self-employed person whose taxable turnover exceeds SAR 375,000 must register for 15% VAT with ZATCA, charge it on invoices and file returns.
What is the Saudi VAT registration threshold?
SAR 375,000 for mandatory registration and SAR 187,500 for voluntary registration, over a rolling 12-month period.
How often do I file VAT in Saudi Arabia?
Quarterly for most businesses; monthly if your annual taxable supplies exceed SAR 40 million. Returns are filed through ZATCA.
Figures are 2026 headline guidance verified against FTA / ZATCA sources — not tax advice. Check current rules or an accountant for your situation.