Saudi Arabia Update: VAT REGISTRATION IS OPTIONAL FOR CERTAIN ENTERPRISES

The Zakat, Tax and Customs Authority has announced that the VAT scheme registration is obligatory for enterprises with annual revenue above SAR 375,000.

However, the authority has said that registration is optional for enterprises with annual revenues between SAR 187,000 and 375,000. Furthermore, the authority has stated that a VAT of 15% will be applied on all products and services provided by enterprises registered in the scheme. The final customer will pay the tax, and the enterprise will then pay it to the authority.

By Hammad & Al-Mehdar, Saudi Arabia, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact saudiarabia@transatlanticlaw.com

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