Value Added Tax

Value Added Tax (VAT) is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions. VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets.

Important Links

What is VAT?

Implementing regulations

Registration processes

Penalties

VAT training

Videos

Goods and services subject to VAT

Details of goods and services

Goods and Services

Details of the good/service	Tax value

Preparing your business

Facilitating SMEs compliance with VAT

Tax Return Filing

Filing an annual tax return for establishments whose annual taxable supplies do not exceed 40 million SAR.

Simplified Invoicing

Using a simplified tax invoice that includes the issuance date, supplier name and address, item/service description, payment amount, and VAT value. The invoice must be issued in Arabic and show the total price including VAT. If the total invoice value is less than 1,000 SAR, the VAT registration number of the supplier is not required.

Cash Basis Accounting

Using the cash basis accounting method for establishments whose annual supplies (current or previous year) do not exceed 5 million SAR.

Does your establishment need specialized support to comply with VAT?

VAT compliance requires fundamental changes to the organization's financial and accounting systems, including:

Record Keeping

Accounting System

Financial Reporting

Cooperating with professional accountants is a crucial step in ensuring proper VAT compliance. The Zakat, Tax and Customs Authority, in coordination with the Saudi Organization for Certified Public Accountants (SOCPA), has trained accountants to support establishments in this regard.

You can access a list of certified accountants and agents via the following links:

Ask professional accountants for support

Tax Agents / Representatives