Vat Registration

By Innovation-sa on October 26, 2022 in Blog

All businesses must register with GAZT, especially those eligible for VAT. They set application deadlines that pertain to the taxable supply’s annual value. Utilize companies with government relations firms in Saudi Arabia, as they have the correct information in these situations. ERAD is the system that administers online taxation in Saudi Arabia. It enables users to enroll, file, and pay taxes, among other things. Businesses that make taxable supplies, regardless of residency, must apply to the Tax System before 20 days of the VAT filing deadline. Every month, businesses must check whether they have crossed the point.

Taxation With VAT

The GCC Framework Agreement, laws, and norms all set the stage for the execution of VAT. The value of a company’s taxable supply determines the VAT registration thresholds for that entity. Imported items, products with standard ratings, supplies with zero ratings, and accrued reverse charges are all included.

What Is The Applicable VAT Rate In Saudi?

It is 15% on the majority of services and items. The pricing went into effect on July 1, 2020, replacing the old 5% charge.

All products and services purchased, sold, or imported are liable for VAT:

  • Food and drinks.
  • Educational services
  • Private medical treatment.
  • Local-based transportation
  • Except for life insurance.

Who May Sign Up For VAT?

Compulsory Signup

Your taxable income determines the necessary licensing level for the previous twelve months.

Voluntary Enrolment

Here the businesses benefit by reducing their input tax burden. The VAT is optional for two groups of people:


  • Participation is open to companies providing more than 187,500 SAR in taxable products and services yearly.


  • If a firm’s taxable sales exceed 375,000 SAR, it may volunteer. Companies that only offer zero-rated goods, including specific medical equipment and overseas transportation, are also eligible to join.

Registration Of Taxpayers For Non-Saudi Residents

Non-residents who offer financial services must present VAT there but do not operate an established firm must enroll. Do you not reside here? Then you require a recognized GAZT. Take the help of government relations.

Documents Required For Saudi Arabia VAT Registration

  • Get the necessary paperwork for Saudi Arabian VAT enrollment:
  • Company Name, with any ID information or even the subject’s name.
  • Address, including email and certain other contact details.
  • The GAZT will provide you with a digital identifying number. If you are registered, you must receive the number.
  • Make a note of the cutoff date or an alternate date.
  • Annual taxable product value

As long as you have all of the above paperwork, you should be fine. Simply consult with government relations services in Saudi Arabia who can assist you.