Saudi Arabia implemented a Value Added Tax regime on 1 January 2018. This was based on the Gulf Co-Operation Council's VAT Treaty, which sets the broad parameters for the role out of VAT across its 6 member states.
Join Philippe Norré, Head, KPMG and Colin Matthews, Avalara for a short webinar to run through the latest VAT developments in Saudi Arabia.
Key components include:
Saudi Arabian VAT registrations
Resident and non-resident businesses performing taxable supplies must register with the tax authorities within 20 days of passing the VAT registration threshold. Businesses most evaluate if they have exceeded the threshold on a monthly basis
The registration threshold is SAR375,000
VAT registrations may back or forward dated
Zero-rated or ‘gift’ supplies will not count towards the VAT registration threshold; but supplies received under the reverse charge will
Voluntary VAT registrations for businesses under the annual threshold will be permitted
VAT registration applications are made electronically, with the following information:
Name of business, including ID information
Address of business, including email contact details
Commercial registration numbers
Date of VAT registration
Value of annual taxable supplies
Anti-splitting rules are included, designed to prevent avoiding the VAT registration threshold
Non-resident tax payers may use a tax agent or register directly
Non-residents must appoint a Tax agent, who must be approved by the tax authorities
Tax agents are joint and severally liable for the tax payer’s VAT liabilities
VAT Group registrations, where connected businesses apply for a single, combined registration and ID are permitted. The criteria for this includes:
Only resident businesses
Common control of the businesses
As least one of the businesses must be eligible for VAT registration in their own right
One of the businesses will be nominated as the reporting entity
VAT deregistrations are required where the taxable supplies cease, or fall below the annual VAT registration threshold
