Non-resident SaaS company and VAT
We are a UK SaaS business selling to Saudi clients. Do we need VAT registration?
The situation
A non-resident making taxable supplies in Saudi Arabia may need to register and must appoint one approved tax representative, who is jointly liable.
The law
- VAT Implementing Regulations Article 77 (tax agents and representatives): Residents may appoint a tax agent; non-residents must appoint one tax representative who is jointly liable
- VAT Implementing Regulations Article 47 (online marketplaces): Marketplaces can be deemed suppliers for non-resident e-services (18 April 2025) and for unregistered resident suppliers (1 January 2026)
What it means for you
For sales to VAT-registered Saudi businesses, the customer often accounts for VAT under reverse charge. Sales to consumers usually require your own registration. If you sell through a marketplace, the 2025 rules can make the marketplace the deemed supplier for e-services.
What to do
- Map customers as businesses or consumers.
- Check marketplace sales rules.
- Appoint a tax representative and register if needed.
We can do this for youVAT registration with ZATCA: mandatory, voluntary and non-resident registration: SAR 1,500