KSA Guide: VAT Registration in Saudi Arabia

Two member states of the Gulf Cooperation Council took the initiative to enforce value-added taxation (VAT) from January 01, 2018, and one of the two was the Kingdom of Saudi Arabia (KSA). All the businesses in KSA are anticipated to be VAT compliant by adopting the guidelines as dictated in the Saudi Arabia VAT Law after the implementation of VAT. In order to a VAT compliant, the first step is to register under VAT. One major benefit which registered businesses enjoy while charging and collecting VAT is that it enables them to recover that Input VAT which they themselves have paid while purchasing for the business before remitting the VAT defrayal to the government. 

The registration for value-added taxation in KSA is basically a 5 step process as discussed below:

Step No: 1 Registration for Tax Identification Number

The following steps needs to be followed in order to register for VAT tax identification number (TIN).

• Click ‘login’ on the GAZT’s website.
• Now click on the ‘Sign Up’ button.
• Tick ‘I Agree’ to continue after reading the terms and conditions.
• Sign up form will be available after accepting the terms and conditions.
• Click on ‘New User Login’ and fill out all the information as demanded. TIN will be available to complete the registration process of VAT after the successful submission of all the details.

Step No: 2 Login to GAZT Web Portal

• Login again to GAZT site by using the same username and password which was used while getting the TIN number.
• In order to attest the login details, a login code will be sent to the registered mobile number.

Step No: 3 Choose VAT registration from the Dashboard

After successful login into the GAZT’s portal, on the dashboard, there can be seen a number of options. Click on the “Register for Value Added Tax (VAT)” for the registration of VAT.

Step No:4 Providing all the details and documents for completing the VAT Registration in KSA

Here all the information on business and related supporting documents need to be furnished for the successful completion of the VAT registration procedure. Details which mainly required are taxpayers’ details, financial details and financial representative.

Initially, there will appear instructions for taxpayers regarding how to proceed with the registration process. Mark tick ‘I Agree with these conditions and Proceed further’ in order to finish the registration process.

In the taxpayers’ details portion, information such as Company Registration (CR), address, TIN will be picked up automatically as per pre-existing records of business in GAZT. However additional information that may be demanded includes 

• Whether the business involves in importing and exporting.
• IBAN number
• Exact date on which business became eligible for the registration of VAT.

In the financial details portion, financial information of the business will be required which mainly includes;

• Proposed taxable sales for the upcoming year
• Taxable sales (Actual) of prior year
• Proposed taxable expenses for the upcoming year
• Taxable expenses (Actual) of prior year

Financial representative section is only applicable to Non-residents of Saudi Arabia where they are required to provide their TIN (if they have), ID number, mobile number and email address. 

After certifying that all the information provided is authentic and accurate, click the “Submit” button, an application number along with acknowledgment will be popped up on the screen which can be downloaded and saved for record purposes.

For enquiries, E-mail: info@aviaanaccounting.com

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