Should I register for VAT?

The criteria for VAT registration depends on the projected annual turnover of your business in the upcoming year.

Mandatory Registration:

You MUST register for VAT if:

• Annual turnover > 375,000 SAR  

Voluntary Registration:

You CAN register for VAT if:

• 187,500 SAR < Annual turnover < 375,000 SAR  

You CANNOT register for VAT if:

• Annual turnover < 187,500 SAR; or 
• All the goods and services sold by your business come under the exempt category.