Zakat, Tax and Customs Authority clarifies VAT registration rules for businesses earning under 200,000 riyals
Saudi Arabia’s Zakat, Tax and Customs Authority says VAT registration is mandatory for annual revenues above 375,000 riyals, optional above 187,500 riyals.
The Zakat, Tax and Customs Authority in Saudi Arabia has issued a clarification regarding the VAT registration rules for businesses earning less than 200,000 riyals. The Authority stated that VAT registration is compulsory for businesses with annual revenues surpassing 375,000 riyals. For entities with revenues between 187,500 riyals and 375,000 riyals, VAT registration is optional.
Businesses with annual revenues below 187,500 riyals are not eligible for VAT registration. The clarification was provided in response to a query asking if a new company, with expected annual income not exceeding 200,000 riyals, could register for VAT and obtain a tax number.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
