Saudi Arabia VAT Guide for Cross-Border Sellers

VAT Overview and Rates: Saudi Arabia implemented VAT at a standard rate of 15% on January 1, 2018, as part of the GCC VAT framework. While most taxable supplies fall under this standard rate, some goods and services may have exemptions or special treatments.
Registration Requirements: Resident businesses must register for VAT if their annual taxable turnover exceeds 375,000 SAR (approximately USD 100,000), with a voluntary option for those between 187,500 SAR and 375,000 SAR. Non-resident businesses making taxable supplies in Saudi Arabia must register immediately and appoint a local tax representative.
Filing and Compliance Risks: Businesses with annual turnover above 40 million SAR must file monthly VAT returns, while those below this threshold file quarterly. Non-compliance can result in significant fines, late filing penalties, and potentially severe consequences, emphasizing the importance of timely registration and accurate submissions.