How to Handle VAT and Local Taxes in MENA SaaS Subscriptions

As SaaS adoption grows across Egypt and the MENA region, taxation is becoming more regulated and enforced. Handling VAT and local taxes correctly can protect your business, avoid fines, and gain customer trust.
With ZgCodes, you can automate tax handling across multiple jurisdictions in the region.

 

1. Why VAT Matters for SaaS in MENA

Many MENA countries now apply VAT (Value Added Tax) on digital services, including SaaS. Here's a quick breakdown:

CountryVAT RateApplies to SaaS?
Egypt 🇪🇬14%Yes
UAE 🇦🇪5%Yes
Saudi Arabia 🇸🇦15%Yes
Bahrain 🇧🇭10%Yes
Oman 🇴🇲5%Yes

Failing to collect and report VAT can result in heavy penalties or service bans.

 

2. Registering for VAT as a SaaS Business

If you're a local or foreign SaaS provider serving customers in a MENA country, you may need to:

Register for a local VAT ID

Charge the correct VAT rate on subscriptions

Submit periodic VAT returns (monthly/quarterly)

Issue tax-compliant invoices

📋 ZgCodes lets you store your tax registration numbers per region.

 

3. Automating VAT Calculation in ZgCodes

ZgCodes offers:

✅ Region-based tax rules
✅ Dynamic VAT calculation based on buyer’s location
✅ Automatic invoice generation with tax breakdown
✅ Localized invoice formats for MENA regulators

You can configure taxes for:

Specific countries (e.g., Egypt 14%)

VAT-exempt clients (B2B with valid tax ID)

Inclusive vs. exclusive pricing (show VAT on top or baked into total)

 

4. How to Apply Tax Settings in ZgCodes

Dashboard → Billing → Taxes & Compliance

Add each country’s VAT rate

Enable or disable auto-tax based on user’s billing address

Add custom fields for TRN, TIN, or رقم السجل الضريبي

Upload your tax certificate if needed

🧾 ZgCodes includes tax on PDF invoices and customer billing history.

 

5. Tips for SaaS Startups in Egypt & GCC

Egypt: Include tax ID on invoice, charge 14% VAT to locals

UAE & KSA: If over registration threshold, VAT is mandatory

Selling outside country? B2B may be exempt; B2C usually taxed

Digital Services Laws: Some countries apply tax to foreign SaaS even without a local office

📌 Always consult a tax advisor to comply fully.

 

6. Exporting Reports for Filing

ZgCodes generates:

Monthly tax reports by region

Sales grouped by VAT rate

Client transaction logs (exportable to Excel or PDF)

Perfect for filing through your accountant or national e-filing portals.

 

Conclusion

Taxation is part of SaaS growth in MENA. With ZgCodes, you don’t need to worry about keeping up with every law change—our billing system is designed to adapt to local tax requirements across the Arab world.

👉 Stay compliant and stress-free—handle VAT the right way with ZgCodes.