How to obtain a VAT Certificate in Saudi Arabia?

Admin

2024-02-09

The Kingdom of Saudi Arabia&pos;s (KSA) Value Added Tax (VAT) law requires firms to register for VAT if their taxable revenue surpasses a predetermined threshold. In Saudi Arabia, obtaining a VAT certificate is a necessary step in the VAT registration procedure.

To comply with KSA VAT law, one must register for VAT. This is necessary for invoicing, as well as for various business stages and timely reporting to the Zakat, Tax, and Customs Authority (ZATCA).

Contact us?

This page details the exact procedure for obtaining, the significance of, how to reprint, and how to validate the VAT certificate in Saudi Arabia.

Excise taxes and value-added taxes (VAT)

VAT The published law and its related rules are in effect as of January 1, 2018.

Except in specific cases, most products and services are subject to a 5% VAT tax. The government raised the regular VAT rate to 15% starting on July 1, 2020.

On June 11, 2017, the Excise Tax Law came into force in Saudi Arabia. The only products that were chosen to be subject to the excise tax in Saudi Arabia were tobacco products (at 100%), soft drinks (at 50%), and energy drinks (at 100%).

Manufacturers and importers of excisable items must register with the GAZT to abide by the Saudi Arabian Excise Tax Law. Companies subject to the Excise Tax Law must meet certain requirements. Failure to register and follow guidelines provided by the GAZT can result in charges of tax evasion. In such cases, fines will be imposed.

Procedures in detail for obtaining a VAT certificate in Saudi Arabia

A step in the VAT registration procedure is obtaining the VAT certificate. In Saudi Arabia, companies need to take the following actions to receive a VAT certificate:

Open the ZATCA portal and log in.
Go to the "General Services" tab.
Select the "VAT Registration" tab.
Complete the registration form with the necessary information and submit it.
After your application is processed, ZATCA will give you a notification and the VAT certificate.

The name of the taxable person, the Taxpayer Identification Number (TIN), and the registration's effective date are all contained on the VAT certificate in Saudi Arabia. Every certificate also has a distinct VAT certificate number attached to it.

The significance of a VAT certificate in Saudi Arabia

Businesses registered for VAT must prominently display their VAT certificates. This display is necessary at both their main office and each of their branches. The VAT certificate serves as proof of VAT registration in Saudi Arabia. Penalties for failing to display VAT certificates at commercial locations could reach 40,000 SAR.

How you can reprint the VAT certificate in Saudi Arabia?

The procedures listed below can help you reprint your VAT certificate from the ZATCA portal if you misplaced it:

Open the ZATCA portal and log in.
Choose "Value Added Tax" under the "E-Services" menu.
Choose "Request for VAT Certification to be reprinted."
Select "Reprint of VAT Certification" after that.
After downloading, open the soft copy of the VAT certificate and print it.

How to verify the VAT certificate in Saudi Arabia?

The ZATCA maintains a central registry of all companies registered for VAT. Customers and other individuals can use the VAT lookup tool found in the ZATCA website's "E-Services" section to verify the validity of a VAT registration.

Invoicing

Depending on the activity and customers, there are several formal invoicing requirements.

A tax invoice must be issued by each taxable person or they must make arrangements for one to be issued about one of the following events:

Any taxable supply of products or services he has given to a non-taxable legal entity or another taxable person

Any amount paid to a taxable or non-taxable legal entity in connection with a supply of goods or services made before the supply's completion.

Businesses must issue tax invoices in an electronic format. The format should comply with regulations set by the Board of Directors or the Minister of Finance. These regulations should be in effect on the date of the supply.

Wrapping Up

The newest accounting software on the Saudi market, Peniel Computer's invoicing software has a sleek, contemporary design and robust functionalities for accounting companies and business owners.

Accounting software provides dual-language e-invoicing in Arabic and English that is simple to use for non-accountants, along with an invoice customization function that allows you to customize the invoice to reflect your company's branding. Additionally, you can submit the stamp of your business, which will appear on all documents, including purchase orders, quotations, and invoices.

Because of the software's creative spreadsheet interface, which makes data entry efficient, accounting and bookkeeping businesses benefit greatly as well. This greatly expedites migration or catch-up work, such as for clients switching from accounting software that isn't ZATCA compliant to Peniel Computer because it complies with KSA Law. Accountants have reported that their capacity to handle over twice as much client work is greater than that of other accounting software.

Check out our QuickBooks add-ons Simplify Property Management Say Goodbye to Handwriting Cheques Enhance Collaboration - ERP