1Issue 2 | Mary 2026

Mandatory Registration For Suppliers resident in the Kingdom, registration is mandatory for all persons whose sales or (value of supplies) exceed the “mandatory VAT registration threshold.” If a person’s total Taxable Supplies exceed, or are expected to exceed, SAR 375,000 over a period of twelve months, that person must register for VAT purposes(17). Taxable persons who are non-resident in the Kingdom must register for VAT purposes regardless of the value of supplies they make in the Kingdom that are subject to VAT. However, if non- resident Suppliers make supplies to Customers registered for VAT, and those Customers are required to account for the VAT themselves on the received supplies using the Reverse Charge Mechanism, the non-resident Supplier shall have no tax obligations(18). In practice, any supply of goods or services made in the Kingdom to a Customer not registered for VAT obliges the Supplier to register for tax purposes. In the context of Electronic Commerce, supplies made by taxable non-resident Persons to end consumers (i.e., B2C) create an obligation for non-resident Suppliers to register for VAT in the Kingdom. Resident Customers in the Kingdom who carry out an Economic Activity may exceed the mandatory registration threshold with respect to goods or services received from non-resident Suppliers. Any supplies that require the Customer to account for VAT themselves under the Reverse Charge Mechanism are included in that Customer’s registration threshold calculation. 3.2.2 Voluntary Registration Any Resident Person in the Kingdom whose Taxable Supplies or taxable expenses exceed SAR 187,500 (“the voluntary registration threshold”) over a period of twelve months may voluntarily register for VAT purposes(19). (17) Article 50, Mandatory Registration, Unified Agreement for VAT (18) Article 47, Persons Obliged to Pay Tax, Implementing Regulations of the VAT (19) Article 7, Voluntary Registration, Implementing Regulations of the VAT, and Article 51, Voluntary Registration, Unified Agreement for VAT 3.3 Value Added Tax Registration Certificate A Resident Taxable Person registered with the Authority is required to display the registration certificate at their principal place of business, branches, and electronic stores, in a manner visible to the public. 4. Electronic Commerce Supplies