A COMPLETE GUIDE TO VAT REGISTRATION IN SAUDI ARABIA – BMS AUDITING

A Complete Guide to VAT Registration in Saudi Arabia – BMS Auditing

A Complete Guide to VAT Registration in Saudi Arabia – BMS Auditing

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Introduction
Since the introduction of Value Added Tax (VAT) in Saudi Arabia in 2018, businesses operating in the Kingdom are required to comply with VAT regulations set by the Zakat, Tax and Customs Authority (ZATCA). At BMS Auditing, we assist companies in understanding their obligations and managing the VAT registration process efficiently. This guide outlines who needs to register, how the process works, and how we can help.

Who Needs to Register for VAT in Saudi Arabia?

VAT registration is mandatory for businesses and individuals conducting economic activity in Saudi Arabia if:

  • Their annual taxable turnover exceeds SAR 375,000.

  • Voluntary registration is allowed if turnover exceeds SAR 187,500.

  • Non-resident businesses supplying goods or services in KSA must register for VAT regardless of turnover.

VAT Registration Process

VAT registration in Saudi Arabia involves several steps through the ZATCA online portal:

  • Create an Account on the ZATCA website.

  • Submit Required Documents, including:

    • Commercial registration certificate

    • Identification documents of the owner or manager

    • Bank account details

    • Financial statements or projections

  • VAT Certificate Issued: Once approved, ZATCA provides a VAT registration certificate with a unique VAT identification number.

Deadlines and Penalties

Businesses must register within 30 days of becoming eligible. Failure to register may result in:

  • A fine of SAR 10,000

  • Additional penalties for non-compliance or late submissions

How BMS Auditing Can Help

At BMS Auditing, our tax professionals are well-versed in Saudi VAT laws and can guide you through:

  • Determining your VAT obligations

  • Completing and submitting registration

  • Ongoing VAT compliance, filings, and advisory

With our regional presence and deep expertise, we ensure your business stays fully compliant with KSA tax regulations.

 

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