Saudi tax authority warns of penalties for late VAT filing by large businesses

Saudi Arabia’s Zakat, Tax and Customs Authority has urged VAT-registered businesses with annual revenues exceeding SR40m ($10.7m) to submit their tax returns for last November by December 31, 2025.

The authority called on eligible enterprises to complete their filings promptly through its official website, zatca.gov.sa, or via its mobile application, ZATCA, warning that delays could result in financial penalties.

ZATCA said that failure to submit VAT returns on time triggers penalties ranging from a minimum of 5 per cent to a maximum of 25 per cent of the tax due.

Saudi tax regulations

The reminder targets businesses subject to Value-Added Tax with annual goods and services revenues above the SR40m threshold.

To support compliance, the authority encouraged taxpayers seeking additional information about VAT obligations to contact it via:

Value-Added Tax is a law in force in the Kingdom and operates as an indirect tax applied to most goods and services bought and sold by businesses, subject to certain exceptions.

ZATCA said timely filing helps ensure compliance with the VAT system and avoids unnecessary penalties for businesses operating in Saudi Arabia.