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Learn everything about VAT Deregistration in Saudi Arabia - FAQs
When is it mandatory for me to deregister?
You MUST deregister if the following conditions apply to you:
Taxable person:
- Ceases to carry on economic activity.
- Ceases to exist as a legal person in the KSA.
Non-resident:
- If the non-resident has not made any taxable supplies in the KSA in the most recent 12-month period as of the end of the month.
Resident registered for at least 12 months (all three conditions must be satisfied):
- Total value of annual supplies or annual expenses in the last 12 months doesn’t exceed voluntary registration threshold (187,500 SAR).
- Total value of annual supplies made in the KSA or annual expenses in the last 24 months doesn’t exceed the mandatory registration threshold (375,000 SAR).
- Total value of annual supplies or annual expenses in that month and the subsequent 11 months is not anticipated to surpass the voluntary registration threshold (187,500 SAR).
When do I have the choice to deregister?
You CAN deregister if:
- The taxable sales in the past 12 months are between 187,500 SAR and 375,000 SAR.
- The projected taxable sales in the next 12 months (current month included) are between 187,500 and 375,000 SAR.