# How to File Your VAT Return with ZATCA in Saudi Arabia
*Practical steps for preparing the quarterly and monthly VAT return*

> **In short:** A step-by-step guide to filing your VAT return with ZATCA in Saudi Arabia: the data you need, deadlines, penalties, and automated VAT reports in Snad.

- **URL:** https://www.snad.io/en/blog/dalil-dariba-qima-mudafa-iqrar-daribiy-saudi
- **Arabic original:** https://www.snad.io/blog/dalil-dariba-qima-mudafa-iqrar-daribiy-saudi
- **Category:** Guides — Tax & Zakat
- **Tags:** Value Added Tax, VAT, ZATCA, Zakat, Tax and Customs Authority, Accounting
- **Published:** 2026-05-10
- **Updated:** 2026-08-02
- **Publisher:** Snad (snad.io)

Every VAT-registered business must file a periodic tax return with the Zakat, Tax and Customs Authority (ZATCA). An incorrect or late return costs money in penalties and creates regulatory problems. This guide walks through the whole process.

## VAT Return Types: Monthly and Quarterly

Quarterly returns: for businesses whose annual taxable revenue is below SAR 40 million. Filed every 3 months. This is the most common type among small and medium-sized businesses.

Monthly returns: for businesses whose revenue exceeds SAR 40 million a year. Filed every month.

Filing deadline: within 30 days of the end of each tax period. For example, the first quarter (January-March) is due at the end of April.

## The Data You Need for the Return

You will need:

Output tax: total taxable sales x 15%, broken down into domestic sales at 15%, zero-rated sales (exports, certain services), and exempt sales.

Input tax: total purchases from VAT-registered suppliers x 15%. Input tax cannot be claimed on purchases from unregistered suppliers.

Net tax due = output tax - input tax. If input tax is the larger figure, you are owed a refund.

## Filing Your Return on the ZATCA Portal: Step by Step

1. Log in to the ZATCA portal (zatca.gov.sa) with your Nafath account.
2. Select 'VAT Services', then 'File a Tax Return'.
3. Enter your sales and purchase figures by category.
4. Review the calculation and confirm the numbers are correct.
5. Submit the return and keep the tracking number.
6. Pay the tax due by bank transfer or through SADAD.

Tip: do not file on the last day. A technical fault on the platform can leave you exposed to a penalty.

## Automating VAT Reports with Snad

Instead of pulling data by hand from several spreadsheets, Snad prepares the VAT report automatically:
- Totals output tax from every sales invoice in the period
- Totals input tax from every supplier purchase invoice
- Separates 15% sales, zero-rated sales and exempt sales automatically
- Produces a finished VAT report whose figures go straight into the ZATCA portal
- Exports to Excel or PDF

## Statutory Penalties for Late Filing and Errors - the Numbers

The schedule of violations and penalties published on the ZATCA website sets the fine for each violation precisely (accessed 1 August 2026):

| Violation | Statutory penalty |
|---|---|
| Failure to apply for tax registration | SAR 10,000 |
| Late filing of the return | No less than 5% and no more than 25% of the value of the tax that should have been declared |
| Late payment of the tax | 5% of the value of the unpaid tax for each month or part of a month |
| Filing an incorrect return | 50% of the difference between the tax calculated and the tax due |
| Issuing a tax invoice while unregistered | Not exceeding SAR 100,000 |
| Failure to keep invoices, books and accounting records | Not more than SAR 50,000 |

Two points deserve attention. First, filing and payment are separate obligations: the late-payment penalty accrues for each month or part of a month and does not stop the moment you submit the return. Second, ZATCA is entitled to double the penalty if the same violation is repeated within three years of the final decision being issued.

## The Exact Statutory Deadline: the Last Day of the Following Month, Not '30 Days'

The statutory rule is more precise than the version usually repeated. The return and the payment are both due no later than the last day of the month following the end of the tax period, not 30 days after it ends. The difference shows up whenever the following month has 31 days.

| Tax period (quarterly filer) | Filing and payment deadline |
|---|---|
| Q1: January - March | 30 April |
| Q2: April - June | 31 July |
| Q3: July - September | 31 October |
| Q4: October - December | 31 January |

Monthly filers follow the same rule: the March return is due 30 April. ZATCA stated explicitly that the deadline for first-quarter 2026 returns was 30 April 2026.

## Classifying Sales Inside the Return: Standard-Rated, Zero-Rated and Exempt

The boxes on the return separate three entirely different treatments, and mixing them up is one of the most common sources of discrepancies at audit:

- **Sales taxed at 15%**: the standard rate on domestic goods and services.
- **Zero-rated sales**: exports outside the Gulf Cooperation Council states, services supplied to non-residents of the Council states, and international transport and its related services. They are reported within sales, and you keep the right to deduct the input tax attached to them.
- **Exempt sales**: these include specific financial services and residential unit rentals.

The practical difference between zero-rated and exempt does not show on the invoice - neither collects any tax - it shows in the input tax. Classifying an export as exempt instead of zero-rated means you have given up a deduction you were entitled to, without anyone asking you to.

## When the Net Balance Is in Your Favour: Credit Balances and Refunds

If input tax exceeds output tax during the period, a credit balance arises in your favour. You have two routes: request a cash refund, or leave the balance to be applied against future tax liabilities.

The VAT refund request service on the ZATCA portal is free. It requires an actual credit balance and an IBAN linked to the main registration, and approved amounts are transferred straight to that account.

A credit balance is not necessarily a sign that something is wrong. It is routine for exporters whose sales are mostly zero-rated while their domestic purchases carry 15%, and for any business that bought large capital assets during the period. Have the supporting invoices ready before you submit the request.

## Correcting a Return You Have Already Filed

Finding an error after submission is no reason to wait for an audit. ZATCA offers a 'Tax Return Amendment Request' service on its portal free of charge. It requires a previously filed return, the reasons for the amendment, supporting documents, and then the amended financial data.

Taking the initiative to correct it works in your favour. The penalty for filing an incorrect return is calculated at 50% of the difference between the tax calculated and the tax due - on the difference alone, not on the whole return. Leaving the error until an audit uncovers it adds the monthly late-payment penalty accumulated across the entire period.

## The Penalty Cancellation Initiative: a Window Open Until 31 December 2026

ZATCA has announced a further six-month extension to its initiative cancelling fines and granting exemption from financial penalties, running from 1 July 2026 to 31 December 2026. The initiative covers late-registration penalties, late-payment penalties, late-filing penalties, and penalties for correcting VAT returns.

Conditions for benefiting: you must be registered with ZATCA, file every outstanding return, and pay the full principal of the related tax debt. An instalment plan may be requested, provided the request is submitted while the initiative is in force and the instalments are paid on their due dates.

What the initiative does not cover: penalties for tax evasion violations, the penalties set out in Article 45 of the VAT Law, penalties already paid before the initiative took effect, and penalties on any return due to be filed after 30 June 2026.

## Three Reconciliations Before You Press 'Submit'

- **Reconcile sales to the books**: total sales on the return must equal the period's revenue in [your accounting records](/accounting), after adjusting for credit and debit notes issued within the same period.
- **Reconcile input tax to invoices**: every SAR of input tax needs a valid tax invoice from a registered supplier. Purchases from unregistered suppliers are not deductible, however large the amount.
- **Reconcile to e-invoicing**: the figures on the return must be consistent with what was sent to the Fatoora platform. Wave 25 targets taxpayers whose taxable revenue exceeded SAR 187,500 during 2022, 2023, 2024 or 2025, with an integration deadline of 1 February 2027 - [Wave 25 details](/zatca/wave-25).

For a quick check on the figures before you enter them in the portal, use the [quarterly VAT return calculator](/tools/finance/vat-return-helper) or the [VAT calculator](/tools/finance/vat-calculator).

## Frequently asked questions

### What is the deadline for filing a VAT return?

The deadline is the last day of the month following the end of the tax period, and it covers filing and payment together. Q1 (January-March) is due 30 April, and Q4 (October-December) is due 31 January. Businesses that file monthly follow the same rule.

### How much is the penalty for filing the tax return late?

Per the schedule of violations and penalties published on the ZATCA website, the penalty for not filing the return on time is no less than 5% and no more than 25% of the value of the tax that should have been declared. Added to it is the late-payment penalty of 5% of the value of the unpaid tax for each month or part of a month, because filing and payment are separate obligations.

### Can I amend a tax return I filed by mistake?

Yes. ZATCA provides a free 'Tax Return Amendment Request' service on its portal. It requires a previously filed return, the reasons for the amendment, supporting documents, and then the amended financial data. Note that the penalty for filing an incorrect return is 50% of the difference between the tax calculated and the tax due.

### When is VAT registration mandatory?

Registration is mandatory for anyone whose annual revenue exceeds SAR 375,000, and optional for anyone whose revenue is above SAR 187,500 and below SAR 375,000. The penalty for failing to apply for registration is SAR 10,000.

### What do I do if input tax is greater than output tax?

You end up with a credit balance. You can request a refund through the 'VAT Refund Request' service on the ZATCA portal, a free service that requires a credit balance and an IBAN linked to the main registration, to which approved amounts are transferred. Alternatively, leave the balance to be applied against future tax liabilities.

### Is the penalty cancellation initiative still in force in 2026?

Yes. The initiative was extended by a further six months running from 1 July 2026 to 31 December 2026, and it covers penalties for late registration, late payment, late filing, and correcting VAT returns, provided you file every outstanding return and pay the full principal of the tax debt. It does not cover tax evasion penalties, nor penalties on any return due to be filed after 30 June 2026.

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## About the publisher
**Snad (سند)** — a private Saudi software company
based in Riyadh, founded 2025. Legal form: Sole proprietorship.
Commercial registration: 7038154642
VAT number: 310959226500003
Only official domain: snad.io
> Snad is a private commercial business-management platform. It is not a
> government body, not a bank, and not a government services portal, and it
> is not affiliated with any government entity. Any site or app with a
> similar name is unrelated to Snad.