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Kingdom of Saudi Arabia (KSA) VAT Registration

Updated

Key Information

In KSA Registration is mandatory from the first sale, even if the sale has been shipped from outside the country. Non‑established (non‑resident) businesses are required to register within 30 days of making their first taxable supply when the customer is not VAT-registered and cannot apply reverse charge.

Tip: Even if you're a non-resident business, storing goods in KSA triggers VAT obligations.

 

Required Documents

To register for VAT in Saudi Arabia, you’ll need:

  • Company Certificate of Incorporation
  • Colour copies of all directors’ passports
  • Two proofs of personal address for each director (e.g. utility bill, bank statement)
  • European VAT certificates (if applicable)
  • Screenshot or profile link from Amazon.sa (if selling on Amazon)
  • Financial flowchart showing how funds are received by the non-resident company
  • Company stamp for Letter of Intent and Power of Attorney (can be created if not available)

 For Takeovers:

  • KSA VAT certificate
  • Login credentials from the previous agent for the online filing system

 

Timeframes:

The average registration takes 6 weeks upon submission to the authorities, this can vary according to ZATCA processing times.

The VAT filings are done according to the turnover of the company in KSA .

  •  Monthly VAT returns: Required for businesses with annual turnover > SAR 40 million.
  •  Quarterly VAT returns: For businesses with annual turnover ≤ SAR 40 million.

 

VAT Rates in Saudi Arabia

Rate Applies To
15% Standard rate – most goods and services
0% Certain exports, international transport, and specific exempt sectors
 For full details, visit the ZATCA VAT Regulations page

 

Penalties for Non-Compliance

Action Consequence
Failure to apply for VAT registration SAR 10,000 fine
Failure to submit VAT return 5%–25% of the undeclared tax
Failure to pay VAT due 5% of unpaid tax per month or part thereof
Issuing tax invoice without VAT registration Up to SAR 100,000 fine
Filing incorrect/amended VAT return resulting in lower tax due 50% of the difference between declared and actual tax
 

 Note: Penalties are enforced by the Zakat, Tax and Customs Authority (ZATCA). Learn more on ZATCA’s official site.

 

 

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