BMS Auditing provides extensive VAT registration services designed for business operators within the Kingdom of Saudi Arabia (KSA). With the introduction of Value Added Tax, it is important to know what to register for to adhere strictly to it and maintain optimal financial management.
Who Should Register for VAT in KSA?
Mandatory VAT Registration
Businesses and private entities must be registered for VAT in KSA if they meet any of the following.
- Tax Residency: The taxpayer is a resident of KSA.
- Turnover Threshold: The overall value of taxable supplies exceeds SAR 375,000 in the previous 12 months or is likely to exceed this amount in the next 12 months.
These conditions are met if all of the following conditions are fulfilled.
The candidate has exceeded SAR 187,500 in all his sales but has yet to reach SAR 375,000 in one calendar year. Registration must be done within 30 days after the last month when these conditions were met.
Voluntary VAT Registration
Businesses must have an annual turnover exceeding SAR 187,500 but have not gone beyond SAR 375,000 and can voluntarily register for VAT. The taxpayer is also a resident of KSA.
Special Cases for VAT Registration
Non-Residents
This does not apply if any of the below-mentioned conditions are met.
- Non-residents making taxable supplies to or acquiring goods/services from KSA must register for VAT within 30 days of their first transaction.
- Non-residents are expected to appoint a tax representative in KSA for purposes of obtaining VAT registration.
VAT Group Registration
In KSA, any legal person can be admitted to a VAT group that meets the specified condition, which is common ownership and a minimum degree of economic activity. The group will be issued a common TIN by ZATCA.
Several Commercial Registries
Entities operating through several branches in KSA or around the world will only require having one VAT registration number linked to their principal commercial registry.
Exemption from VAT Registration
Only suppliers of zero-rated supplies are exempt from VAT registration, though any other threshold might have been exceeded.
How to Register for VAT in KSA
To request VAT registration, companies will have to follow these steps on the ZATCA e-services portal:
- Read the Instructions: First, read the registration instructions that are made available on the portal.
- Taxpayer Information: The portal will auto-fill existing information; you should fill in the rest of the information like IBAN as well as eligibility trigger date.
- Financial Information: You should submit expected and actual taxable sales and expenses for the last and next 12 months and attach the relevant documents
- Tax Agent Information: Non-residents shall provide details of the appointed tax agent.
- Declaration: The declarant is to declare that all information furnished is correct.
Why BMS Auditing?
At BMS Auditing, we take care to be cognizant of the nuances in issues related to VAT registration and compliance in KSA. Our experts are working toward helping you get everything you need in the VAT registration process. This includes:
- Professional VAT registration advice.
- Consultancy services suited to your business.
- Ongoing VAT information and changes to compliance procedures.
Make sure your business effectively and accurately fulfills all VAT requirements. Call BMS Auditing today to engage the best VAT registration services in Saudi Arabia.
