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Global Business Services

KSA VAT
Information

Taxable | Foreign Entities| Return Filing

If you are planning to or are already selling goods or services in Kingdom of Saudi Arabia, you will need to register for VAT. You can always find the latest information on VAT in KSA on the KSA government tax portal or if you have any further questions, please feel free to contact us.

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KSA VAT Information

KSA VAT Rate: 15%, Our KSA VAT Registration Only take 1 week

KSA implemented VAT on the 20th December 2017, VAT rate at 5%;  The VAT rate has been increased to 15% from 1st of July 2020.  KSA Local Company  VAT registration threshold:

  • Mandatory VAT registration is SAR37500                                                              

  • Voluntary VAT registration is SAR187500

Late VAT registration penalty is SAR 10,000. The penalty for failure to pay VAT on time is 5% of the VAT due for each month. Failure to file VAT return on time will result in a fine of no less than 5% and not more than 25% of the VAT due.

Foreign entities must be registered for VAT at 1st sales, within 30days. Foreign entity registering KSA VAT, must appoint a local representative or local accountant to deal with their tax affairs. All VAT return filing is done via online account with GAST, which must be link to a local Saudi mobile number. Each VAT account login requires 2 step access using a security code sent to the mobile phone number.
 
KSA  VAT return filing can be quarterly or monthly; sales over 40million must file monthly. The deadline is the quarter end next 28th of the month or 30th next month

VAT Payment: Can be paid directly to Saudi tax office, but many clients have experienced issues with the payment. We provide solution of KSA VAT payment for all our clients

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