Saudi Arabian VAT registration
What are the Saudi Arabian VAT registration thresholds?
Resident and non-resident businesses performing taxable supplies must register with the tax authorities within 20 days of passing the VAT registration threshold. Businesses must evaluate if they have exceeded the threshold on a monthly basis. The registration threshold will be SAR375,000.
- VAT registrations may be 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
- Anti-splitting rules are included, designed to prevent avoiding the VAT registration threshold
What information is required when submitting a Saudi Arabian VAT number and registration?
All 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
Saudi Arabian VAT deregistrations
VAT deregistrations may be required where the taxable supplies cease, or fall below the annual VAT registration threshold
Do I need a Saudi Arabian tax agent?
- 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
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