TaxSavvySA

Saudi freelancer and the VAT threshold

I am a Saudi designer earning about SAR 30,000 a month. Do I need VAT?

The situation

SAR 30,000 a month is SAR 360,000 a year, below the SAR 375,000 mandatory VAT 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 do not have to register yet. A small raise to about SAR 31,250 a month takes you over the line. If most of your clients are VAT-registered companies, voluntary registration lets you recover VAT on your laptop and software costs without hurting them.

What to do

  1. Track rolling 12-month billing.
  2. Consider voluntary registration.
  3. Register within 30 days if you cross SAR 375,000.

We can do this for youFreelancers in Saudi Arabia: freelance document for Saudis, legal routes for expats, VAT and tax: SAR 1,500

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