TaxSavvySA

Freelance designer VAT registration

I bill clients about SAR 25,000 a month as a freelancer. Do I need VAT?

The situation

SAR 25,000 a month is SAR 300,000 a year, below the SAR 375,000 mandatory threshold but above the SAR 187,500 voluntary threshold.

The law

  • Saudi VAT Law and VAT Implementing Regulations, registration rules: Mandatory registration above SAR 375,000 of taxable supplies; voluntary above SAR 187,500; apply within 30 days

What it means for you

You are not yet required to register. If most clients are VAT-registered businesses, voluntary registration costs them nothing net and lets you recover input VAT. If income rises to about SAR 31,250 a month, you will cross the mandatory line.

What to do

  1. Track monthly income.
  2. Decide if voluntary registration helps.
  3. Register once you pass SAR 375,000.

We can do this for youVAT registration with ZATCA: mandatory, voluntary and non-resident registration: SAR 1,500

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