VAT in GCC
KSA Registration Information
Businesses are expected to register themselves by December 20, 2017 as per the government website.
A new government website focusing primarily on VAT has outlined the registration pre-requisites and process.
Check this link of the VAT.GOV.SA site
All companies, businesses or entities which make an annual taxable supply of goods and services in excess of SAR 375,000 are legally required to register for VAT by 20th December 2017.
However, all taxable persons whose annual taxable supplies exceed the mandatory Registration threshold but do not exceed SAR 1,000,000 will be exempted from the requirement to register until 20th December 2018.
Those which make an annual taxable supply of goods and services in excess of SAR 187,500 are eligible for voluntary Registration. Voluntary Registration provides significant benefits for the companies since it allows the deduction of input tax.
Registration of taxable persons not Resident in Saudi Arabia
Non-Residents, who carry on economic activities but have no fixed place of business or fixed establishment in Saudi Arabia, will be required to register if they have the obligation to pay VAT in Saudi Arabia.
All Non-Resident taxable persons must have one Tax Representative established in Saudi Arabia and who is approved by GAZT. For further information about Tax Representatives or Agents, please follow the link
GAZT may request documentation from the taxable person to evidence that the above requirements are met.
How should businesses register?
In order to register for VAT, businesses must first be registered at GAZT for Zakat and Income Tax.
Some large companies, particularly those already registered for other forms of tax in Saudi Arabia, will be auto-registered for VAT by GAZT:
- If this applies to your business, you will receive a notification from GAZT notifying you of this
- In that case, we advise you to log-in to check the validity of the information and to upload any supporting documents you may have on the following link: https://gazt.gov.sa/ then click on user login
If your company is not auto-registered, Registration will be open to all eligible companies and businesses starting 28 August 2017 also through the following link: https://gazt.gov.sa/ then click on user login.
The Registration form will require registrants to specify:
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)