Learn everything about VAT Deregistration in Saudi Arabia - FAQs

When is it mandatory for me to deregister?

You MUST deregister if the following conditions apply to you:

Taxable person:

• Ceases to carry on economic activity.
• Ceases to exist as a legal person in the KSA.

Non-resident:

• If the non-resident has not made any taxable supplies in the KSA in the most recent 12-month period as of the end of the month.

Resident registered for at least 12 months (all three conditions must be satisfied):

• Total value of annual supplies or annual expenses in the last 12 months doesn’t exceed voluntary registration threshold (187,500 SAR).
• Total value of annual supplies made in the KSA or annual expenses in the last 24 months doesn’t exceed the mandatory registration threshold (375,000 SAR).
• Total value of annual supplies or annual expenses in that month and the subsequent 11 months is not anticipated to surpass the voluntary registration threshold (187,500 SAR).

When do I have the choice to deregister?

You CAN deregister if:

• The taxable sales in the past 12 months are between 187,500 SAR and 375,000 SAR.
• The projected taxable sales in the next 12 months (current month included) are between 187,500 and 375,000 SAR.