VAT Registration in Saudi Arabia: Everything You Need to Know for 2025
VAT Registration in Saudi Arabia: Everything You Need to Know for 2025
Blog Article
Value Added Tax (VAT) is an essential part of the taxation system in Saudi Arabia, governed by the Zakat, Tax, and Customs Authority (ZATCA). Businesses operating in the Kingdom must comply with VAT registration requirements to avoid penalties and ensure smooth operations. In this guide, BMS Auditing provides a detailed overview of VAT registration services in Saudi Arabia, including eligibility, procedures, and compliance requirements.
Who Needs to Register for VAT in Saudi Arabia?
VAT registration is mandatory for businesses and individuals whose taxable supplies exceed a certain threshold. The criteria include
Mandatory Registration
Businesses with an annual taxable supply of SAR 375,000 or more must register for VAT.
Non-resident entities providing taxable goods or services in Saudi Arabia must register, regardless of the threshold.
Voluntary Registration
Businesses with annual taxable supplies between SAR 187,500 and SAR 375,000 can register voluntarily.
Voluntary registration allows businesses to reclaim input VAT on purchases, benefiting startups and small enterprises.
How to Register for VAT in Saudi Arabia?
VAT services in Saudi Arabia is a straightforward online process through ZATCA’s portal. Here’s a step-by-step guide:
Create an Account on ZATCA Portal
Businesses must first register with ZATCA by creating an online account.
Submit VAT Registration Application
Provide business details such as trade license, tax identification number (TIN), and financial information.
Indicate the expected annual revenue and taxable supplies.
Receive VAT Registration Certificate
Once approved, businesses receive a VAT registration certificate, including their VAT Taxpayer Number.
Issue VAT-Compliant Invoices
Businesses must issue invoices that meet ZATCA’s VAT invoice requirements, including VAT numbers and tax details.
VAT Compliance and Filing
After VAT registration, businesses must comply with ongoing VAT obligations:
VAT Return Filing: Registered businesses must file VAT returns on a monthly or quarterly basis, depending on their revenue.
VAT Payments: Businesses must remit VAT collected from customers to ZATCA by the due date.
Record-Keeping: Maintain proper financial records for at least six years to comply with audits and inspections.
VAT Penalties for Non-Compliance
Failure to register, file, or pay VAT on time can result in penalties, including:
SAR 10,000 fine for non-registration when required.
5%-25% penalty on unpaid VAT for late filings.
SAR 1,000-50,000 for record-keeping violations.
How BMS Auditing can help?
Navigating VAT regulations in Saudi Arabia can be complex, but BMS Auditing provides expert VAT services and VAT return in KSA, including:
VAT registration assistance
VAT compliance and filing support
Tax advisory and audit representation
VAT refund claims and record-keeping guidance
Our experienced tax consultants ensure your business remains compliant with Saudi VAT laws while optimizing your tax obligations.
Get Expert VAT Assistance today
If your business needs help with VAT registration or compliance in Saudi Arabia, contact BMS Auditing today. Our team of tax experts is ready to assist you with hassle-free VAT solutions.
Contact: +966 13820 6066
Email: ksa@bmsauditing.com Report this page