Value Added Tax (VAT) was introduced in Saudi Arabia in January 2018 at 5% and increased to 15% in July 2020 as part of the government's fiscal diversification strategy. Businesses with annual taxable revenue exceeding SAR 375,000 must register for VAT with ZATCA, file monthly or quarterly VAT returns and maintain compliant invoicing and record-keeping systems. Failure to register, file returns or remit VAT on time attracts significant fines. E-invoicing (Fatoorah) requirements add a further layer of compliance. New company setups must include VAT registration as a mandatory post-incorporation step. Inclusive Solutions supports VAT registration and compliance setup.