Updates for non-established businesses in KSA

Currently the online registration process through the ERAD system does not facilitate the process of VAT registration for non-established businesses.

As an interim measure, to facilitate the VAT registration for non-established businesses, GAZT have indicated, that they will shortly issue manual VAT registration forms in order to temporarily register businesses for VAT. We expect to receive the form direct from GAZT.

Further points are listed below:

  • Businesses will still be required to provide details of their tax representative  on the manual VAT registration form and this requirement still remains. GAZT have indicated that all contract and eligibility formalities for nominated tax representatives must be completed. However, initially, they will only require the name of the tax representative to be stated on the form. They will request for completed contracts between the non-resident taxable business and their tax representative at a later stage.
  • For non-established businesses the VAT return period will be extended to March 2018 with submission due in April 2018. GAZT will notify businesses whether the quarterly return periods will remain or revert back to monthly returns. 
  • GAZT are working on developing a separate system to support non-established business registration and VAT submissions. Once the system is set up, they will automatically register the existing businesses and issue them with new VAT numbers. They expect to complete this before the submission of the first VAT return.
  • Invoices issued by non-resident businesses are still expected to meet the requirement of having the required details in Arabic.
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