Understanding VAT Registration in Saudi Arabia: FAQs

How do I register for VAT in the KSA?

If you already have a valid TIN (Tax Identification Number), follow these steps:

• Go to www.zatca.gov.sa and click Register for VAT on the right side of the page.
• Fill in the User and Password fields and click Sign In.
• Enter the one-time login code that is sent to the mobile number you have registered for ZATCA.
• Navigate to the Dashboard page to start your registration.

Note:
If you do not have a TIN, you need to sign up for one on the ZATCA website prior to VAT registration:

• Go to www.zatca.gov.sa and click Register for VAT on the right side of the page.
• Click Sign Up.
• Select New User Signup at the top of the page and fill in your details.

Are there any prerequisites for VAT registration?

Before you register for VAT, you must have a TIN (Tax Identification Number).

You can register for a TIN directly from the ZATCA website.

Should I register for VAT?

The criteria for VAT registration depends on the projected annual turnover of your business in the upcoming year.

Mandatory Registration:

You MUST register for VAT if:

• Annual turnover > 375,000 SAR  

Voluntary Registration:

You CAN register for VAT if:

• 187,500 SAR < Annual turnover < 375,000 SAR  

You CANNOT register for VAT if:

• Annual turnover < 187,500 SAR; or 
• All the goods and services sold by your business come under the exempt category.

What is group registration?

Group registration is the process by which two or more legal persons apply to be considered as a single entity for VAT. The group is treated as a single taxable person with consolidated supplies.

What qualifies a group to register for VAT together?

For a group to qualify for VAT group registration, they must meet these conditions:

• Each legal person must carry out an economic activity.
• Each legal person must be a resident of the KSA.
• At least one group member must be a taxable person eligible to be registered for VAT and independently meet the taxable sales threshold for VAT registration.

As long as one member of the group is a taxable person, other entities whose annual taxable sales are below the voluntary registration threshold (187,500 SAR) are eligible to join the group.

One member of the group must be designated as the group representative; the others will be designated as group members.

What is the process to register for a VAT group?

A request to form a VAT group should be made by one of the group members, who must already be registered for VAT. To register as a VAT group:

• Log in to the ZATCA portal.
• Fill out the VAT group application form.
• Receive ZATCA’s approval or rejection for the application.

What information is required to register for a VAT group?

The group representative must provide the following information:

• VAT eligible sales/purchases information at the total group level.
• Effective date requested for group registration.

Other members of the group must provide the following information:

• TIN (if any)
• VAT eligible sales/purchases information
• Proof of association with a group representative, for example:
• Articles of Association/Memorandum of Association.
• Audited documents, such as audited financial statements.
• Other documents demonstrating association with the group representative.

What happens to the VAT account numbers of the group members?

If the application for a VAT Group is approved by the ZATCA, the VAT Group will inherit the VAT account number of the group representative.

The VAT account numbers of other group members are deactivated to suspend their individual filing obligations. However, it doesn’t mean that they are deregistered from VAT.index.md