Saudi VAT for Foreign Companies: Registration Preparation & Support
For non-resident suppliers that make taxable supplies in the Kingdom: we work out whether you must register at all, prepare the registration file, explain the guarantee, and support your returns from Riyadh.
The short answer
A non-resident that must pay Saudi VAT has to register whatever the value of its supplies — there is no threshold — within 30 days of its first taxable supply, and the registration is backdated to that supply. Appointing a Saudi-resident tax representative is optional; providing a security (cash or bank guarantee) is a condition of registration.
Who this is for
- Foreign companies supplying services to Saudi consumers or to customers that are not VAT-registered
- Foreign sellers of goods located in the Kingdom, including goods sold after customs clearance
- Foreign sellers of goods through online marketplaces (the marketplace rules do not cover them)
- Foreign groups with a Saudi project that need to know whether the reverse charge already covers them
How we help
- 1.A first check: does the reverse charge cover your supplies, so that you need not register?
- 2.Preparing the registration file and the information ZATCA’s form asks for
- 3.Explaining how the guarantee is sized, with and without a tax representative
- 4.Support with VAT returns, Arabic invoices and records kept in the Kingdom
- 5.Deregistration when you stop making taxable supplies in the Kingdom
Key facts
No registration threshold for non-residents; apply within 30 days of the first taxable supply.
Source:VAT IR Art. 5(1) [T02-0004]Registration is backdated to the first taxable supply.
Source:VAT IR Art. 5(2) [T02-0005]A tax representative is optional; the guarantee is mandatory.
Source:VAT IR Art. 77(2), 10th edition, printed p.73 (PDF p.79) [T02-0058]VAT IR Art. 77(3) with Art. 65 [T02-0010]Without a tax representative, the guarantee is double the estimated average quarterly output tax.
Source:VAT IR Art. 65(1)(a) and (b) as amended by Resolution 9-3-19 [T02-0011]B2B services to a VAT-registered Saudi customer: the customer accounts for the VAT under the reverse charge.
Source:VAT IR Art. 47(1) [T02-0006]Non-residents are not required to issue FATOORA e-invoices for their own supplies.
Source:E-Invoicing Regulation Art. 3(C), p.3 [T02-0201]
Registering as a non-resident
A non-resident obliged to pay Saudi VAT on supplies it makes or receives in the Kingdom must register whatever the value. It applies within 30 days of the first supply on which it had to pay tax.
Source:VAT IR Art. 5(1) [T02-0004]It uses ZATCA’s registration form itself or through a tax representative; representative details are given only if there is one.
Source:VAT IR Art. 9(3), printed p.4 (PDF p.10) [T02-0060]A security (cash or bank guarantee) is a condition of registration, based on the estimated average quarterly output tax — double that amount without a tax representative. ZATCA may set minimum and maximum values.
Source:VAT IR Art. 77(3) with Art. 65 [T02-0010]VAT IR Art. 65(1)(a) and (b) as amended by Resolution 9-3-19 [T02-0011]A tax representative is jointly liable for the VAT due; its annual liability is capped at double the average quarterly output tax.
Source:VAT IR Art. 77(2) [T02-0009]
When the customer accounts for the VAT
Services to a VAT-registered Saudi customer: the customer applies the reverse charge; the non-resident does not charge VAT and need not register for those supplies.
Source:VAT IR Art. 47(1) [T02-0006]GCC Agreement Art. 9(2), 41(1) [T02-0138]The reverse charge also covers goods: where goods are supplied in the Kingdom by a non-resident, the registered Saudi customer self-accounts.
Source:Unified GCC VAT Agreement Art. 41(1) ('Goods or Services') [T02-0900]A marketplace that intermediates services from a non-resident is treated as buying and reselling them, and collects the VAT.
Source:VAT IR Art. 47(2) as amended by Board Resolution 01-06-24 (19 Nov 2024) [T02-0026]No marketplace rule covers goods sold by a non-resident seller: that seller registers itself from its first sale.
Source:VAT IR Art. 47(2) (services only) and 47(3) (resident unregistered sellers only) [T02-0029]
Frequently asked questions
Is there a VAT registration threshold for a foreign company?
No. A non-resident that must pay Saudi VAT on supplies it makes or receives in the Kingdom registers whatever their value, within 30 days of the first supply on which it had to pay tax.
From when does a non-resident’s registration take effect?
From the date of the first supply on which it had to pay tax. The registration is backdated.
Must we appoint a Saudi tax representative?
No. A non-resident can appoint a Saudi-resident tax representative for its VAT obligations, but it is optional. The guarantee is what is mandatory.
What is a tax representative liable for?
It is jointly liable with the non-resident for the VAT due. Its annual liability is capped at double the non-resident’s average quarterly output tax, and runs until ZATCA confirms it has stopped acting.
Is a guarantee required?
Yes. Every non-resident must provide a security — cash or a bank guarantee — as a condition of VAT registration.
How is the guarantee calculated?
It is based on the estimated average quarterly output tax. For a non-resident without a tax representative it is double that amount. ZATCA may set minimum and maximum values or use other methods.
How do we apply?
On ZATCA’s registration form, either directly or through a tax representative. Representative details are only filled in if you have one.
We only sell services to VAT-registered Saudi businesses. Do we need to register?
Where the Saudi customer is VAT-registered and liable under the GCC Agreement, it accounts for the VAT under the reverse charge. You do not charge VAT and need not register for those supplies.
Does the reverse charge apply to goods as well?
Yes. Where goods are supplied in the Kingdom by a supplier that is not resident there, the VAT-registered Saudi customer self-accounts the VAT. In ZATCA’s example, the customer pays import VAT at customs and also self-accounts VAT on the contract price, and may deduct both.
We sell goods to Saudi customers through an online marketplace. Who handles the VAT?
You do. No marketplace deemed-supplier rule covers goods sold by a non-resident seller, so the seller registers for Saudi VAT itself from its first sale. The marketplace rules cover services from non-residents and goods from resident unregistered sellers.
Is a sale taxable if the goods have not yet cleared Saudi customs?
Goods sold before customs clearance in the Kingdom are not a taxable supply there. Once cleared and located in the Kingdom, any sale of them is a supply in the Kingdom, in addition to the import VAT already paid.
Who pays import VAT, and who can deduct it?
The person appointed or acknowledged as importer pays it. Only the importer can deduct it, holding the customs documents and using the goods in its taxable activities.
Do we have to issue FATOORA e-invoices?
No. Non-residents are not required to issue electronic invoices for their own supplies, though normal tax-invoice rules still apply to a registered non-resident. A Saudi seller invoicing you must still e-invoice.
How often do non-residents file VAT returns?
There is no separate period for non-residents: monthly above SAR 40 million of supplies in the previous 12 months, otherwise quarterly, due by the last day of the following month.
Can our records be kept abroad and in English?
Records are kept in Arabic and in the Kingdom, physically or by electronic access from the Kingdom, for at least 6 years. Tax invoices must be in Arabic; another language may appear as a translation.
When must a non-resident deregister?
When it has made no taxable supplies on which it had to report tax in the Kingdom in the most recent 12 months. Deregistration takes effect from the date ZATCA sets.
What happens if we register late?
Failing to register within the deadline carries a fine of SAR 10,000.
General information only, not tax or legal advice. Laws change; check the official Arabic text or speak to a qualified adviser before acting.
Rules cited on this page
Each statement above names the library row it comes from. The law and article, the date the row was last verified against the official source, and a link to the official text where one is held are listed here.
| Row | Law / article | Verified on | Official text |
|---|---|---|---|
| T02-0004 | VAT IR Art. 5(1); Imports/Exports Guideline s.3.2; Professional Services Guideline s.3.2 | 2026-10-04 | — |
| T02-0005 | VAT IR Art. 5(2) | 2026-10-04 | — |
| T02-0006 | VAT IR Art. 47(1); Unified GCC VAT Agreement Art. 41(2); Professional Services Guideline s.4.6 and FAQ 1 | 2026-10-04 | — |
| T02-0008 | VAT IR Art. 77(2) as amended by Board Resolution 9-3-19 of 30/10/1440H (3 July 2019); unchanged in the 10th edition (April 2025) | 2026-10-04 | — |
| T02-0009 | VAT IR Art. 77(2) | 2026-10-04 | — |
| T02-0010 | VAT IR Art. 77(3) with Art. 65 | 2026-10-04 | — |
| T02-0011 | VAT IR Art. 65(1)(a) and (b) as amended by Resolution 9-3-19 | 2026-10-04 | — |
| T02-0013 | VAT IR Art. 66(1), (2) and (3) | 2026-10-04 | — |
| T02-0018 | E-Invoicing Regulation Art. 3 (as quoted in ZATCA Detailed Guideline v2 s.3.1 and the E-Invoicing FAQ) | 2026-09-30 | — |
| T02-0019 | VAT IR Art. 58; Art. 59(1); Art. 62(1) | 2026-10-04 | — |
| T02-0020 | VAT IR Art. 13(2); VAT Law Art. 5(1)(c) | 2026-10-04 | — |
| T02-0021 | VAT Law Art. 41 | 2026-09-30 | — |
| T02-0026 | VAT IR Art. 47(2) as amended by Board Resolution 01-06-24 (19 Nov 2024); Amendments Guideline (April 2025) s.2.10.2 | 2026-10-04 | — |
| T02-0028 | VAT IR Art. 47(3) as amended; Amendments Guideline s.2.10.3 | 2026-10-04 | — |
| T02-0029 | VAT IR Art. 47(2) (services only) and 47(3) (resident unregistered sellers only); IR Art. 5(1) | 2026-10-04 | — |
| T02-0031 | Imports/Exports Guideline s.4.1; IR Art. 26(1) and 27(3) | 2026-10-04 | — |
| T02-0036 | Imports/Exports Guideline s.10.3; GCC Agreement Art. 48 | 2026-10-04 | — |
| T02-0058 | VAT IR Art. 77(2), 10th edition, printed p.73 (PDF p.79) | 2026-10-04 | — |
| T02-0060 | VAT IR Art. 9(3), printed p.4 (PDF p.10) | 2026-10-04 | — |
| T02-0138 | GCC Agreement Art. 9(2), 41(1); IR Art. 47(1), printed p.38; Art. 62(2)(d), printed p.57 | 2026-10-04 | — |
| T02-0201 | E-Invoicing Regulation Art. 3(C), p.3 | 2026-10-04 | — |
| T02-0900 | Unified GCC VAT Agreement Art. 41(1) ('Goods or Services'); VAT IR Art. 47(1); Imports/Exports Guideline (AR, May 2026) s.5.4 and Example (2), printed p.23, fn 38 (EN version s.5.4 p.25) | 2026-10-05 | — |
| T02-0901 | Imports/Exports Guideline (EN, May 2026) s.4 (fn 20 = VAT IR Art. 27; fn 21 = Art. 26) | 2026-10-05 | — |
| T02-0903 | Unified GCC VAT Agreement Art. 42 (Arabic text prevails; read in GCC-SG copy) | 2026-10-05 | — |
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