Riyadh June 30, 2022:

Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) have denied the existence of a value-added tax (VAT) exemption certificate.

The Authority clarified that all business owners in the region who engage in economic activities are to obligatory register in the VAT system if their annual revenues reach the mandatory limit, which is SR 375,000. However, business owners who engage in economic activities and whose annual revenues are less than SR 187,500 are not obligated to register.

The Authority also clarified that businesses whose annual revenues exceed SR 187,500 but do not exceed SR 375,000 are eligible for the optional VAT registration.

If revenue touch the mandatory registration threshold, then business owners are required to register within 30 days.

Read more.