VAT de-registration in Saudi Arabia refers to the process by which a business can cancel its VAT registration with ZATCA. It is only possible subject to certain conditions and either by the taxpayer itself or ZATCA on its initiative.
Why VAT De-Registration
ZATCA may accept de-registration requests from a taxpayer under the following conditions:
- Cessation of Economic Operations: The state whereby any economic activities carried out by any business are found to cease their taxable supplies to Saudi Arabia.
- Registered Legal Entity Dissolution: Registered Legal Entity Dissolution Meaning A circumstance in which a registered legal entity ceases to exist.
- Non-resident taxpayer: This refers to a situation whereby a non-resident taxpayer has not, within the country, made or carried out any taxable supplies for some time.
Voluntary Deregistration
Apart from the compulsorily disclosed cases as mentioned above, the business can opt to deregister for VAT voluntarily if its annual taxable supplies fall below SAR 187,500 and are unlikely to exceed it in the next 30 days.
Timely Action Required
The de-registration of VAT needs to be initiated within 20 business days from the date of an event that would demand such a move, or else compliance issues or penalties could creep in.
BMS Auditing - taxation consultants
Our experience in processing the VAT de-registration will keep you on the right side of the rule books with the least amount of hassle. You can ask your questions or seek help on VAT de-registration. Just contact us today!
