VAT Registration in Saudi Arabia

VAT registration in Saudi Arabia has been part of the business incorporation procedure for foreigners for some time. So, if you plan to start an enterprise here, you can rely on our local specialists for a 2-in-1 solution to have your company running as soon as possible.

Who is required to register for VAT in Saudi Arabia?

The following taxable persons:

• Saudi companies that have reached annual taxable supplies of more than SAR 375,000 (approx. 99,000 USD);
• foreign companies for which there is no minimum registration threshold, meaning they need to apply for Saudi VAT numbers as soon as they enter the local market.

What are the VAT registration requirements for foreign companies in Saudi Arabia?

Foreign companies must complete the procedure for VAT registration in KSA (Kingdom of Saudi Arabia) as soon as they make VAT-taxable income. A foreign enterprise must apply for a VAT number in Saudi Arabia regardless of the registration threshold.

What are the steps to obtain a VAT number in Saudi Arabia as a local company?

The procedure for obtaining a VAT certificate in Saudi Arabia for a local company implies completing the following 5 steps:

1. obtaining a Tax Identification Number Account (TIN);
2. accessing the ZATCA portal;
3. applying for VAT registration;
4. submitting the information and paperwork necessary to complete the VAT registration;
5. filing a declaration on the VAT-taxable income generated or to be obtained for voluntary registration purposes.

Is there a voluntary VAT registration procedure available in Saudi Arabia?

Yes, voluntary registration can be completed as soon as a business reaches a turnover of SAR 187,500.

What is the time frame to apply for a VAT number in Saudi Arabia?

30 days from the end of the month in which the registration threshold is exceeded (or expected to be exceeded) in the case of Saudi companies. The same timeframe applies to foreign companies operating through branches and subsidiaries; however, in their case, time elapses from the commencement of activities.

Is it necessary to appoint a local representative for foreign companies?

Yes, however, this requirement applies to non-resident companies only.  Our agents can act as fiscal agents on your behalf, should you need support. The representative must be approved by the Zakat, Tax and Customs Authority (ZATCA).

What documents do I need to supply to obtain a VAT code in Saudi Arabia?

The following are required for a Saudi company:

• the details of the company (name, tax ID, address, valid email);
• the value of the annual taxable supply.

Here is the information to be filed for Saudi VAT registration as a foreign company:

• name of the company and identification details;
• business address and email contact information;
• commercial identification information (Certificate of Registration) ;
• VAT registration date in the home country;
• value of annual taxable supply.

How long does it take to obtain a VAT number in Saudi Arabia?

Around 15 working days.

What does a Saudi VAT number look like?

The VAT number is a 15-digit code made up of:

• a country code available for a Gulf Cooperation Council member state, which, in the case of Saudi Arabia, is 3;
• an 8-digit unique identifier;
• one check digit;
• a 3-taxpayer number;
• a 2-digit code representing the type of tax.

What are the rates of the VAT in Saudi Arabia?

The standard rate of 15% is applied for most goods and products liable for VAT.

Here is also a list of VAT-free supplies in Saudi Arabia:

• exports of products;
• services provided to non-GCC residents (non-residents), subject to conditions;
• services for international passenger and cargo transportation;
•  eligible transportation services;
• qualifying medications and medical supplies;
• the initial supply of qualifying metals (gold, silver, or platinum) for investment.

If you have further questions about the Saudi Arabian VAT or for assistance in setting up a company in Saudi Arabia, please get in touch with our friendly staff.