KSA Guide: GAZT & VAT Registration in Saudi Arabia

أفضل مستشاري ضريبة القيمة المضافة في جدة الرياض الدمام المملكة العربية السعودية

Value Added Tax (VAT) is a consumption-based tax levied on goods and services. VAT is an indirect tax that is a substantial source of revenue for world economies. The burden of the tax falls on the end consumer who purchases or uses the goods and services. The responsibility of tax collection, management, and accounting is done by businesses on behalf of the KSA government.

VAT was introduced in KSA on 1 January 2018 with the rate of tax at 5%. The VAT in the KSA besides oil is going to be another source of revenue for the KSA. It will help the country have more resources for the infrastructure development of the country for the citizens. The Federal Tax Authority is the governing body for all the VAT related matters, which introduced laws and procedures for the effortless transition and management of the VAT. The businesses will collect tax at each point of value addition and make payment to the government through VAT returns with the option of a refund for the VAT paid in some cases.

VAT Registration in Saudi Arabia

The General Authority of Zakat and Tax (GAZT) is responsible for supervising the implementation, administration, and enforcement of VAT in KSA.

Mandatory Registration

All the businesses who have a place of residence in the KSA and the value of taxable supplies of goods and services exceeds SAR 375,000 in the preceding 12 months should mandatorily register under VAT in KSA.

Voluntary Registration

Businesses in KSA with the value of taxable supplies of goods and services excess of SAR 187,500 in the preceding 12 months are eligible for voluntary Registration. Voluntary Registration is vital for claiming the input tax credit.

Registration of taxable persons Non-Resident in Saudi Arabia

Non-Residents having no fixed place of business or fixed establishment in KSA, who carry on economic activities, are required to register if they have the obligation to pay VAT in KSA.

We at Aviaan Accounting have a lot of experience with regards to VAT Consultancy; we would make no errors in the calculation of taxes, ensure that businesses stay prepared, and offer valuable tax advice.

Aviaan Accounting provides the following services:

  • Assessment of readiness of VAT for businesses
  • Help businesses in online VAT registration with the concerned authorities
  • Provide VAT consulting for maintenance of records for tax compliance
  • Help in tax process transition and appointment of VAT agents in KSA
  • Guide to businesses for VAT return filing at the right time

Aviaan Accounting has handled the VAT registration in KSA for many companies. For more details regarding the VAT registration in KSA, get excellent advice and help at Aviaan Accounting in KSA.

For enquiries, E-mail:


Related Articles:

What Is The VAT Impact On Trading Sector In Saudi Arabia

What Is The VAT Impact On Non-Profit Organizations In Saudi Arabia?

What Is The VAT Impact On The Telecommunications Sector In Saudi Arabia?

Tax Representative, VAT Fiscal Representative KSA

Leave a Reply