Tax rate by region Saudi Arabia

To register for VAT in Saudi Arabia, businesses first need to have a valid Tax Identification Number (TIN). During registration, the tax authority will ask for financial information like estimated taxable sales and expenses for the upcoming year, as well as actual figures for the past 12 months.

Businesses can also register voluntarily for VAT even if they haven’t reached the mandatory threshold, as long as their taxable sales in the past 12 months were at least half of the registration threshold (SAR 187,500).

Streaming services, such as Netflix, Amazon Prime, and Spotify;
App and software downloads, including games, productivity software, and mobile apps;
E-books and digital publications;
Online advertising, including display ads, social media ads, and sponsored content;
Cloud-based services, such as storage, computing, and software-as-a-service (SaaS) solutions;
Online marketplaces and e-commerce platforms, including Amazon, eBay, and Souq.com;
Online education and training courses;
Online gaming, including in-game purchases and subscriptions;
Digital financial services, such as online banking and payment processing;
Web hosting and domain registration services.

Late Filing of VAT Return:

Penalty: Not less than 5% and not more than 25% of the tax due.
This penalty applies even if there’s no tax due (nil return) or if you have excess recoverable VAT.
2. Late Payment of VAT:

Initial Fine: 5% of the unpaid tax amount.
Additional Penalty: An additional penalty of 1% of the unpaid tax amount is levied for each month or part of a month that the tax remains unpaid.
3. Other Violations:

Failure to issue a Tax Invoice or issuing an incorrect Tax Invoice: A fine of up to three times the value of the supply.
Failure to keep proper records or submitting incorrect information: A fine of up to SAR 10,000 (approximately 2,600 USD).
Tax evasion: A fine of up to five times the tax due, imprisonment, or both.