VAT Registration in Saudi Arabia

BMS Auditing has the best VAT consultants offering VAT Services in KSA that guide you to do VAT Registration in Saudi Arabia more efficiently. Contact us! Our team has great knowledge and is highly experienced and skilled in assisting client businesses with the registration process. 

According to the VAT Rates in Saudi Arabia, the initial standard VAT Rate in January 2018 is 5% and then, it was updated to 15% in July 2020. Since the implementation, businesses in this country have been made to stay compliant with the VAT regulations and guidelines. The first phase of compliance is the VAT registration in KSA, as only the registered businesses are eligible to impose VAT on their products and services, collect the charges and pay it to the government. 

This session discusses more on VAT registration in Saudi Arabia and the process to do it in the simplest way.

Types of VAT Registration in KSA

VAT does not mandate all businesses to register for VAT. The VAT regulations have implemented a margin in the case of VAT registration. This margin is defined based on the annual value of products. Every Business that thinks of getting a VAT Certificate in Saudi Arabia falls under any one of the following,

1. Mandatory Registration
2. Voluntary Registration
3. Registration Exemption

Mandatory Registration

The businesses established in the Kingdom of Saudi Arabia with taxable goods with a value exceeding SAR 375,000 in the previous financial year must register for VAT in Saudi Arabia. The non-resident businesses must register for VAT regardless of the registration margin. Moreover, a non-resident need to hire a GAZT-approved Tax Representative from KSA.

Voluntary Registration

This is an optional registration for specific groups of businesses in Saudi Arabia. Businesses having residence in KSA with a value of the taxable products falling between SAR 187,500 & SAR 375,000 in the previous year, are eligible for VAT Registration in Saudi Arabia. 

Under this category, VAT registration is not mandatory for businesses. However, if registered, you get notable benefits in your businesses as it enables the deduction of input tax. 

Registration Exemption

Here, the businesses involved in supplying zero-rated products are exempted from VAT registration, although the value of the annual production exceeds the registration margin. However, these businesses are eligible for Voluntary registration. 

What are the documents required for KSA VAT registration?

There are certain documents necessary for VAT registration in Saudi Arabia. Here are the major details to be documented for VAT Registration in Saudi Arabia:

• Details on taxpayers
• Financial statements 
• Financial Registration 

Based on the taxpayer type under which a business owner belongs, he/she has to present necessary documents declared by the GAZT. Here is a list of documents to submit during VAT Registration in KSA

VAT Registration Process in Saudi Arabia

Businesses require to register for VAT through the General Authority of Zakat & Tax (GAZT) web portal. The registration timelines are declared by the GAZT based on the annual value of taxable products. 

Let us look at the steps involved in VAT registration:

1. Register for the Tax Identification Number (TIN), if not obtained earlier 
2. Log in to the GAZT portal
3. Select ‘VAT Registration’ on logging in
4. Fill out the registration form with the relevant documents 
5. On successful review and approval VAT registration will be completed