What is VAT Registration?
Registration is the process by which a taxable person is enrolled for VAT. Upon Registration a taxable person will be assigned a dedicated VAT account number.
Which businesses should register?
All companies, businesses or entities which make an annual taxable supply of goods and services in excess of SAR 1,000,000 have been legally required to register for VAT by 20th December 2017.
However, all taxable persons whose annual taxable supplies exceed the mandatory Registration threshold of SAR 375,000 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, are 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.
You can register online on the following link.
For detailed steps please watch the demo video posted below:
The Registration form will require you 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)
How should natural persons register for VAT (conducting economic activities but do not have a CR)?
Natural persons conducting economic activities and do not have a CR are eligible to register for VAT. To do that, a TIN is required which is obtained by registering on GAZT's website on the following link.
For clarification on requirements, or all VAT-related queries, please call toll free number 19993. The hotline is open from 8am to 12am.