This guide provides an overview of VAT in Saudi Arabia, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Saudi Arabia.
tripled overnight in Saudi Arabia from 5% to 15% in July 2020 to offset pandemic revenue losses.
Foreign businesses that incur VAT on eligible expenses in Saudi Arabia may be able to reclaim it.
The following documents would need to be submitted as part of a VAT refund for Saudi Arabia: all invoices for which a refund is claimed, along with proof of payment of these invoices, a completed claim form, refund letter, description of nature of purchases and documents for your appointed agent (if applicable – e.g., if you have appointed VAT IT as your agent).
Generally an entity will be able to submit a VAT refund in Saudi Arabia on the claimable expense types if the entity is not established in Saudi Arabia or another GCC country, does not have a VAT registration in Saudi Arabia and does not make taxable supplies that would be subject to VAT in Saudi Arabia. A business would need to register as an Eligible Person before a VAT refund in Saudi Arabia can be submitted. VAT IT will be able to assist with submitting your VAT refund in Saudi Arabia.
No, unlike many other countries there is only the standard Saudi Arabia VAT rate of 15% and Saudi Arabia does not have reduced VAT rates. As such, expenses which would be subject to a VAT refund in Saudi Arabia would only be subject to the standard Saudi Arabia VAT rate.
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