VAT Registration KSA ( Saudi Arabia)

VAT Registration KSA

Following a public consultation in July and August, the Kingdom of Saudi Arabia (KSA) released final VAT regulations through the tax authority (GAZT) website on 29 August. This follows an earlier consultation process and the publishing the domestic VAT law in July. The regulations, the law and the finalized GCC Framework Agreement, form the foundations for introducing VAT across all sectors in KSA from 1 January 2018.

ERAD is the KSA’s online tax administration platform offering user functionality to register for, file and pay taxes in the Kingdom, amongst other things. Resident and non-resident businesses performing taxable supplies must register with the tax authorities within 20 days of passing the VAT registration threshold. Companies must evaluate if they have exceeded the point every month. The registration threshold will be SAR375, 000. This article will explain ‘How to apply for VAT Registration in KSA’.

Registration process

Step 1: Register for Tax Identification Number (TIN)

The first step toward VAT Registration is to get the Tax Identification Number. This needs to get before the VAT Registration from the GAZT website. For the Registration of VAT TIN, follow the procedure stated below.:

  • Click on ‘Login’ on GAZT’s website
  • After loading the page, you will get the button to sign up. Click on that
  • This page contains instructions to help taxpayers with the registration process. Read the terms and conditions and tick ‘I Agree to proceed.
  • Sign up form will be available. Select ‘New User Login’ and fill in all the required details. After successfully submitting all the details, TIN will be available for you to complete the VAT registration process.

Step 2: Log in to GAZT Portal

After receiving the TIN, you must log in to the GAZT website to start the registration process. As shown below, you need to mention the username and password while obtaining the TIN. Next, you need to authenticate the login using the login code sent to the registered mobile number as shown below:

Step 3: Select VAT registration from the Dashboard

After login into the GAZT’s portal, you can see the Dashboard as shown below. To navigate the Registration page, you must slide to the next page. On sliding to the next page, click ‘Register for Value Added Tax (VAT)

Step 4: Taxpayer details for VAT Registration

This is an essential step in the VAT registration process. Here, you must furnish your business details and upload relevant supporting documents as required. The registration form will need you to specify 3 critical information mentioned below:

  1. Taxpayers Details
  2. Financial Details
  3. Financial Representative
  4. Let us discuss the steps for completing the registration details.

After clicking on click ‘Register for Value Added Tax (VAT), the registration form, as shown below, will open:

This form Contains 5 Parts. They are

Part 1: Instructions and conditions

The first page will instruct taxpayers on how to proceed through the registration. After reading, you need to tick ‘I Agree with these conditions’ and Proceed further to complete the registration process.

Part 2: The taxpayer must give details like:

  • The IBAN (International Bank Account Number) is associated with the business’s VAT account.
  • The date on which the business became eligible for VAT.
  • Whether the business is involved in importing or exporting goods/services.

Specific details like the business’s TIN (Tax Identification Number), CR (Commercial Registration number), and address are also listed. These details will be auto-filled by GAZT based on pre-existing records for each business.

Part 3: Financial details

The part will contain the financial details based on assessing the business’s VAT eligibility. The following information needs to be declared under financial details:

  • Projected taxable sales for the next year
  • Actual taxable sales for the last year
  • Projected taxable expenses for the next year
  • Taxable actual expenditures for the previous year

Part 4: Financial representative details (only mandatory if you are a non-KSA resident)

This section applies only to Non-residents. For Residents, this is optional, and they may choose to skip this section. The non-residents need to provide information about their designated tax representative in Saudi Arabia. Each non-KSA business will need to provide the following details of tax representatives:

  • TIN (if they have one)
  • ID number (such as a Saudi, Iqama, or GCC ID)
  • Mobile number
  • Email

Part 5:Declaration

Finally, the applicant should confirm the accuracy of the submitted information and provide their name and ID number. On clicking ‘Submit’, an application number will be available along with the acknowledgement, which can download.

Step 5: Taxpayer details for VAT Registration

After Successful review and Approval, VAT registration will be issued.

Registration deadlines

GAZT has already opened up VAT registration for businesses. The deadline for VAT registration depends on the annual taxable sales of the company:

  • Companies with taxable yearly sales over 1,000,000 SAR must register by 20 December 2017,
  • Companies with annual taxable sales of less than 3,75,000 SAR and under 1,000,000 SAR must register by 20 December 2018.

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