It is mandatory to register for Value Added Tax, VAT, in Saudi if the annual sales of your business is more than SAR 1,000,000. You can take your time till 20th December, 2018, if the annual sales is more than SAR 375,000, but less than SAR 1,000,000.
Voluntary Registration
If your annual sales is more than SAR 187,500, you are allowed to do voluntary VAT registration. Even if you don’t fall under the mandatory registration category, it is beneficial for your business to go for voluntary VAT registration as it allows you to deduct input tax.
Tax Obligation of Non Residents having business activities in the Kingdom
If you have business operations in Saudi, but is without a fixed establishment here then you must have a GAZT (regulator) approved Tax representative in the Kingdom.
To register for VAT, you have to visit General Authority of Zakat & Tax website.
In the registration form you will have to share the below details:
- Whether you are an importer
- Whether you are an exporter
- IBAN number (for refunds) – not required if already logged with GAZT
- VAT eligibility start date
- VAT taxable supplies (expected over next 12 months)
- VAT taxable supplies (past 12 months)
- VAT taxable purchases (expected over next 12 months)
- VAT taxable purchases (past 12 months)
- Financial Representative details (only mandatory if you are not a Saudi resident)
If you are a natural person without a CR, but is conducting economic activities then you can also register for VAT by using TIN. It can be obtained by registering on this GAZT’S website link.
