TaxSavvySA

Voluntary registration on expenses only

We are a start-up with big costs but no sales yet. Can we register?

The situation

Voluntary registration is available above SAR 187,500. Practitioners also apply it where taxable expenses pass SAR 187,500 before sales begin; confirm this option on ZATCA before relying on it.

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

Registering lets you recover VAT on set-up costs. Example: fit-out of SAR 400,000 carries SAR 60,000 VAT you can claim. You must then file returns every period, even nil ones.

What to do

  1. List taxable expenses.
  2. Apply for voluntary registration.
  3. File every return.

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

Related