The standard VAT rate in Saudi Arabia is 15% on most goods and services.

The responsibility for remitting the tax by the supplier, seller, or service provider. In specific cases, the tax may be remitted by the customer according to the reverse charge calculation.

Businesses and individuals engaged in economic activities with annual revenues exceeding the minimum registration threshold of 375,000 SAR must register for VAT. Those with lower revenues can also register optionally.

1- Charities. 2- Diplomatic and International Organizations. 3- Licensed Real-Estate Developers

The partial exemption is a system that allows businesses to reclaim a portion of the VAT paid on inputs based on the proportion of their taxable sales. In other words, if a business has exempt or non-taxable sales, it can only recover a part of the VAT paid on its inputs based on the proportion of taxable sales.

Yes, non-resident companies providing services in Saudi Arabia are required to register for VAT and must appoint a local Tax Representative to comply with the requirements.