BMS Auditing has the best VAT consultants offering VAT services in KSA that guide you to do VAT Registration in Saudi Arabia more efficiently. Contact us! Our team has great knowledge and is highly experienced and skilled in assisting client businesses with the registration process. According to the VAT rates in Saudi Arabia the initial standard VAT Rate in January 2018 is 5% and then, it was updated to 15% in July 2020. Since the implementation, businesses in this country have been made to stay compliant with the VAT regulations and guidelines. The first phase of compliance is the VAT registration in KSA, as only the registered businesses are eligible to impose VAT on their products and services, collect the charges and pay it to the government.

Types of VAT Registration in KSA

VAT does not mandate all businesses to register for VAT. The VAT regulations have implemented a margin in the case of VAT registration. This margin is defined based on the annual value of products. Every Business that thinks of getting a VAT Certificate in Saudi Arabia falls under any one of the following,

1. Mandatory Registration
2. Voluntary Registration
3. Registration Exemption

Mandatory Registration

The businesses established in the Kingdom of Saudi Arabia with taxable goods with a value exceeding SAR 375,000 in the previous financial year must register for VAT in Saudi Arabia. The non-resident businesses must register for VAT regardless of the registration margin. Moreover, a non-resident need to hire a GAZT-approved Tax Representative from KSA.

Voluntary Registration

This is an optional registration for specific groups of businesses in Saudi Arabia. Businesses having residence in KSA with a value of the taxable products falling between SAR 187,500 & SAR 375,000 in the previous year, are eligible for VAT Registration in Saudi Arabia.

Under this category, VAT registration is not mandatory for businesses. However, if registered, you get notable benefits in your businesses as it enables the deduction of input tax.

Registration Exemption

Here, the businesses involved in supplying zero-rated products are exempted from VAT registration services, although the value of the annual production exceeds the registration margin. However, these businesses are eligible for Voluntary registration.

Types of VAT Services in KSA

BMS Auditing in KSA is a pioneer in VAT consulting, with a highly experienced and knowledgeable team who assists you with all the aspects concerning VAT. BMS provides quality VAT services in Saudi Arabia where you are updated on changes in regulations so you stay compliant with the rules declared by ZAKAT.

VAT Registration in KSA

If your business is yet to register for VAT under ZAKAT, you need to calculate the taxable amount at the end of every month for 12 months to evaluate the eligibility for registration. At BMS, we assist through the complete VAT registration process in Saudi Arabia to avoid risks of missing necessary documentation and prevent fines or penalties.

VAT Return Filing in KSA

In KSA, you can file VAT Returns through the ZATCA (Zakat Tax & Customs Authority) portal. Being a taxpayer, you must present the VAT Return online under the VAT regulations of Zakat. At BMS in KSA, Our VAT Return Filing Services help you file the VAT Returns through the corresponding online portal.

VAT Refund

In KSA, refunds are requested quarterly with a single annual claim of 1000 Saudi Riyals. BMS Team in KSA assists you with claiming a VAT Refund.

VAT Accounting

VAT Accounts is the current tax balance with the Saudi Arabian General Authority of Zakat & Income Tax. Every VAT account depicts the tax debit, and credit payments- done and due. BMS Auditing assists you with maintaining accurate details for VAT in the Accounting process in Saudi Arabia.

VAT Audit

To commence a VAT Audit in KSA, you need to submit the records on VAT calculations, and the documents corresponding to the VAT Returns, invoices, and similar transitions. BMS Auditing provides the most efficient VAT Audit services and audit support in Saudi Arabia.

VAT Health Check

Right before the implementation of VAT, a Company is obliged to conduct VAT Health Check/impact assessment. It helps to pinpoint the risk levels, walk through the controls for business operations and other suggestions to address the defects of the company. BMS provides comprehensive VAT Health Check services in KSA, which include a review of the business's VAT processes.

VAT Consultancy

Customers ranging from public corporates to family businesses seek VAT consulting from experts. BMS has professionals and an experienced team who provide effective advice on tax structures, and direct and indirect tax potential across GCC.

VAT De-Registration

VAT De-Registration in KSA is done through an e-service portal from Zakat and the Tax & Customs Authority. BMS Auditing is the best service provider in the case of the de-registration process for VAT in Saudi Arabia.

Documents Required For VAT Registration in Saudi Arabia

There are certain documents required for VAT registration in Saudi Arabia:

1. Name of the business, which includes ID information or name of the concerned individual
2. Address, such as email and other contact details
3. Electronic identification number provided by the GAZT, if any
4. CR (Commercial Registration) number
5. Mention the date of VAT registration, or a requested alternative date
6. The annual worth of taxable products

Conclusion

VAT registration in Saudi Arabia is a crucial step for businesses operating in the Kingdom, ensuring compliance with local tax laws and avoiding penalties. With expert VAT services, businesses can streamline the registration process, maintain accurate records, and meet all reporting requirements efficiently. Partnering with a trusted VAT consultant helps ensure full compliance while focusing on core business growth.

The threshold for mandatory VAT registration in Bahrain is BD 37,500. BMS Auditing is is offering hassle-free VAT registration services in Bahrain. Every business or individual in Bahrain should follow Bahrain's VAT compliance and register with VAT. All the businesses must know, who is liable to register under VAT. However, there is an option to voluntarily register under VAT, while there are businesses that are totally exempted from VAT registration.

Who should register for VAT?

Registration follows a phased process wherein the business entities or the individuals within particular VAT supply groups need to register by specific dates.

Mandatory VAT Registration

Entities and individuals annually generate revenue more than the threshold of BHD 37500 and not more than BHD 500,000 annually are eligible for Mandatory VAT registration.

Voluntary VAT Registration

Entities and individuals generating revenue of more than BHD 18,750 annually are eligible for Voluntary VAT registration.

VAT Registration for Non-residents in Bahrain

Non-residents (without a fixed place for business or a fixed establishment) should register for VAT in 30 days from the first taxable stock to non-taxable persons, irrespective of the thresholds.

Non-residents could apply for VAT registration in Bahrain with the National Bureau for Taxation (NBT) directly, or by appointing a Tax representative to pay on their behalf.

Bahrain VAT in detail

The VAT in Bahrain Law has now been published and sets out the general principles for the application of VAT in Bahrain. In line with the Unified GCC Agreement for Value Added Tax (VAT), VAT has been implemented in Bahrain on 1 January 2019.

It is expected that the VAT Executive Regulations also has been published in the before implementation and provided more detail on specific areas of the Law. However, the Law sets out a number of differences from the VAT Laws that have been already been implemented in the UAE.

Some of these key differences relate to the zero-rating and VAT exemption provisions in the Law. In particular, it is expected that Bahrain will apply the zero-rate on basic food items, the construction of new buildings, education and healthcare services, local transport services, as well as oil and gas and derivatives.

The sale and lease of real estate as well as certain financial services (i.e. those with an implicit fee) and life insurance/reinsurance will be exempt from VAT. Financial services provided for an explicit fee including account management, certain trade finance services, and fund managers will be subject to standard rate VAT. Standard rate VAT will also apply to non-life insurance/reinsurance. A separate decree establishing a new tax authority in Bahrain has also been published.

Conclusion

VAT registration is a critical requirement for businesses operating in Bahrain, ensuring compliance with the Kingdom’s tax regulations. At BMS Auditing, we provide end-to-end VAT services—from registration and filing to advisory and compliance support. Our expert team ensures a smooth and accurate process, helping your business stay fully compliant while focusing on growth and efficiency. Partner with BMS Auditing for about what is Bahrain VAT