Many individuals in Saudi Arabia are looking for a way to verify the registration in the Saudi VAT, especially since the registration process has become mandatory, and without verifying the registration in the Saudi VAT for companies and individuals, huge penalties and fines will be imposed with the possibility of banning the practice of commercial activity as well, so Individuals must verify their registration, and in this article we will show you the correct way by which you can verify your registration in Saudi VAT easily and avoid being subjected to fines or penalties set by the Kingdom of Saudi Arabia.
What is Saudi VAT?
Before we talk about how to verify registration in the Saudi VAT, we will first need to define what Saudi VAT is, and simply it is one of the types of indirect taxes that are imposed on sales and purchases of goods and services through companies.
The value-added tax is applied not only in Saudi Arabia, but also in more than 160 countries around the world, because it mainly contributes to strengthening the state budget and is one of the sources of state revenue as well.
As for the amount of value-added tax in the Kingdom of Saudi Arabia, at the beginning of July 2020, Saudi Arabia announced that it would raise its value to 15%, after it was previously only 5%.
The importance of registering for the Saudi VAT
It is of great importance to register for the Saudi VAT, as the Zakat, Tax and Customs Authority in the Kingdom of Saudi Arabia has obligated the institutions to register for the Saudi VAT.
This is so that they are not subjected to legal accountability and financial penalties, and the Zakat, Tax and Customs Authority in the Kingdom of Saudi Arabia has taken all necessary measures to facilitate the registration process for VAT.
How to check your Saudi VAT registration
The Kingdom of Saudi Arabia, through obligating the Zakat, Tax and Customs Authority, made it possible to verify the registration in the Saudi VAT easily and electronically through the authority’s website.
There are a number of basic steps that individuals need to be able to verify registration in the Saudi VAT, and the most important of those steps are in detail:
- Log on to the website of the General Authority for Zakat and Tax, and you can go to it directly from the link below.
- Choose “electronic services” from the main page of the website of the General Authority of Zakat and Tax.
- Click on the “VAT Registration Verification” service.
- Fill in the required data correctly, namely: Choose the search type “Tax Number” and write the serial number.
- Click I am not a bot, and pass the required test
- Click on “Search.”
After that, you will see all the details about verifying the tax number in the steps and detailing the registration in the Saudi VAT for the data entered.
Note that if no data is available, it means that you have entered the required data incorrectly, or that you do not meet the required conditions.
Conditions for VAT registration for individuals and companies
After we showed you how to verify registration in the Saudi VAT, we will now move to present the most important conditions for registration in Saudi VAT for individuals and companies, which were set by the General Authority for Zakat and Income, and the following are the most important of those conditions:
- Registration is mandatory if the economic or commercial activity of the person exceeds 375,000 Saudi riyals annually.
- In the event that the annual income of a person falls between 185 thousand and 375 thousand Saudi riyals, in this case the registration for VAT is optional.
- Individuals whose annual income is less than 185,000 Saudi riyals are not subject to VAT registration.