As a potential stock in the Middle East market, it has attracted much attention. Earlier, some old sellers from the UAE had entered Saudi Arabia in advance through the internal invitation system to make rich money first. Bilateral trade between China and Saudi Arabia is frequent, and Chinese goods are welcomed by the local rich. The new site in Saudi Arabia contains huge business opportunities. Today, Amb will introduce Saudi VAT to you again and help sellers comply with regulations.
Who needs to register for Saudi Value-added Tax (VAT)
According to UAE and Saudi law, if you are a non-UAE/Saudi resident selling goods to UAE/Saudi customers through the Amazon FBA channel, you are required to register for VAT regardless of the turnover.
Saudi Arabia and the United Arab Emirates began to collect VAT from January 1, 2018. Overseas companies are forced to collect VAT without exemption limit. Required to submit registration materials to the tax Bureau within 30 days of local sales. So, "Do you need to register for Saudi/UAE VAT beyond a certain sales quota?" In fact, there is a misunderstanding, to be different from the local business registration conditions should be shown.
How do I register for VAT？
VAT registration in Saudi Arabia must be done on the GAZT system on the official website and submitted by the tax representative, who is jointly and severally liable. This means that if the overseas company does not pay VAT, then the financial representative must.
Materials for Saudi VAT registration are as follows:
Business license
Corporate license or ID card
Application form for registration
Foreign non-residents TIN VAT reg form
How and when is Saudi VAT declared
Saudi VAT declaration frequency is based on annual taxable sales, and tax declaration and payment should be completed before the end of the month following the declaration cycle (the last day).
Under 40MM SAR, quarterly report (natural quarterly report)
Over 40MM SAR, monthly declaration
How to pay Saudi VAT tax
Tax payment in Saudi Arabia and UAE can be paid directly by the seller to the tax bureau. The details of the remittance account in Saudi Tax Bureau are as follows:
Saudi Arabia bank
Bank Name: RIYADBANK ALMURABA
Account Name: PYMT TRANS OUT OF KSA FOR ZAKAT AND INCOME TAX
SWIFT/(BIC) : RIBLSARI
IBAN: SA1620000002183203589940
Can I deduct the input VAT for customs clearance?
Customs clearance in Saudi Arabia requires a local Middle Eastern company as the importer (IOR). The code used in customs clearance is called "Customs Registration Code", and the application for this code requires two conditions: 1. Register local Saudi companies, 2. Apply for import license. At present, we have received information from the relevant person in charge of ARAMEX that if the seller does not have IOR in the Middle East, the dxb import company recommended by ARAMEX can be used as the IOR, and then the seller's vat acct Number can be used for customs clearance. This dxb import company is responsible for the import declaration.