VAT Middle East _ UAE VAT _ Saudi VAT Official Interpretation

Middle East (UAE, Saudi Arabia)
Official VAT interpretation and tax solutions

Learn about tax service provider promotions below

What is VAT?

Value added tax, or “VAT” for short, is an indirect tax that applies to sales, that is, a transaction-based tax. VAT operates throughout the supply chain of producers, manufacturers, wholesalers, and retailers; ultimately, this ensures that VAT is accounted for at every step of the supply chain until settlement is made to the end buyer.
VAT rates may vary depending on the country/region where the service is provided. According to the UAE Tax Authority's official website, the VAT rate applicable to most goods and services in the UAE is 5%. According to the Saudi tax authority's official website, the VAT rate applicable to goods and services in Saudi Arabia is 15%.

Which sellers are required to register for VAT?

If you are a non-UAE resident and supply products to local UAE customers through Fulfilment by Amazon (FBA), you are required to register for VAT regardless of how much sales you make, even if it's zero.

If you are a UAE resident and supply products to local UAE customers, you are required to register for VAT if the total supply and import value exceeds the required registered sales threshold of 375,000 dirhams (approximately RMB 66,8962 in total) within the past 12 months or are expected to be within the next 30 days.

Please check your country's tax website for details: https://eservices.tax.gov.ae/#/Logon

If you are a non-Saudi resident and sell products to local Saudi residents through Amazon Logistics (FBA) channels, you will need to register for Saudi VAT from the day you start your first sale in Saudi Arabia.

If you are a resident of Saudi Arabia, the minimum sales levy required to register for Saudi VAT is 375,000 Saudi riyals (approximately RMB 654,375 in total).

Please check your country's tax website for details

Still unsure about VAT?Check out what our sellers say

We are a Middle Eastern site that began operating after the Spring Festival in '21. Later, we learned through the account manager's chat group that I still have the obligation to register a VAT number. Now we have a company we have been working with for many years to help us deal with VAT issues, so we are only concerned about the registration price. Everything went smoothly during the VAT compliance process, and I am very satisfied.

I think the Middle East site is a blue ocean market with good profit margins. Plan the future, lay out rationally, and develop steadily. If you want long-term development, VAT is the basis for standardized management. Registering a VAT number also helped my sales. First of all, FBA is definitely more worry-free and more efficient than self-delivery, and the weight of multiple products is also better; for customers, timeliness and after-sales are also guaranteed. In order not to have unnecessary problems in the future, it is better to plan as soon as possible and prepare the layout ahead of time.

-- Eutenghao

We began contacting and launching the Middle East site at the end of 2019. As a small and micro seller, our idea is to expand the site to increase sales channels. At the beginning, some products were transferred from Europe and the US to the Middle East. It didn't take long for us to have some sales and orders, then we received email notifications from the platform and case notifications from the seller platform, informing us that we are obligated to register a VAT number. The relevant Amazon staff also began calling to communicate about VAT matters, which attracted our attention. The usual channels for obtaining VAT information include official information sharing, resources from various industry groups, and corresponding resources can also be found on some public accounts. We are more concerned about compliance in the Middle East: the price and length of VAT registration, the filing process, VAT rates, and matters relating to tax inspection in the Middle East. When choosing a tax agent, in addition to the above factors, check their level of professionalism.

Registering a UAE and Saudi VAT number is a step towards compliance. If you want to do business on the platform for a long time, then compliance is an unavoidable topic; it must be done; otherwise, risks will gradually accumulate. Our experience is: Setting up a Middle Eastern site is like upgrading and fighting monsters little by little. The market size here may not be as large as Europe or America, but if you do it steadily, you can move up gradually. After accumulation and accumulation, it can also have good sales volume. In particular, once you have VAT compliance, you can make longer-term plans without worrying about business interruptions or losses due to tax non-compliance at any time.

-- APIKA

Since the launch of Amazon's Middle East site, we have been operating on the Middle East site. Initially, we expanded with European and American sites to achieve the goal of expanding sales. After years of operation, we have also discovered that Amazon's Middle East site has great potential, is characterized by low competition and high profits, and we are gradually paying attention to it.

In order to effectively reduce account risk, effectively improve the buyer experience, and reduce manual labor, using Amazon FBA is our best choice. Thanks to our operating experience in Europe, we understand that compliance management is only sustainable, and it also makes us understand the importance of tax compliance in the Middle East. This did not come out of nowhere. A few years ago, there was an incident on the European site where they were unable to provide a VAT number and the site's sales privileges were suspended.

When selecting a tax service provider, we requested information on the relevant service provider from the account manager and screened it. During this period, we mainly focused on the following points: first, qualifications, whether the service provider has the right to act as a tax agent in the Middle East, a key factor that determines whether it can provide us with perfect services and make us have no worries; second, offline services that meet the usage habits of Chinese sellers. Chinese sellers adapt to the habit of using instant questions and answers, rather than overseas sellers using email questions and answers within 24 hours; third, price. Small and medium sellers will not choose service providers where the service price accounts for too much sales profit.

Once we have finally selected a service provider and registered a VAT number, we only need to focus on our business and not worry about tax risks.

-- Wireless industry business seller (anonymous)

VAT VAT registration process

You should apply for registration within 30 days of making your first tax-inclusive sale to an UAE/Saudi customer.

● UAE
You can register online on the tax authority's website. The registration process is completely free!Alternatively, you can contact a tax advisor to assist you with registration.

(Official website of the tax authority: https://eservices.tax.gov.ae/#/Logon)

● Saudi Arabia
Since the registration process for a Saudi tax number is complicated (requires filling out a form in Arabic and receiving a verification code with a local Saudi mobile phone number), it is recommended that you contact a tax advisor to help you register and complete tax compliance more quickly.

Registering for VAT may involve a number of related compliance requirements, including requiring documentation and issuing tax invoices to your customers.

Update your VAT number in Seller Central.
If you have successfully completed the VAT registration process and the tax authority has issued you a VAT registration number, you can update your account with this registration number by clicking this link.

Issuing VAT invoices to customers

Tax solutions

We understand that it can be difficult to register VAT in the UAE/Saudi Arabia without an external tax service provider.
A number of tax service providers have provided tax support promotions to sellers on Amazon Middle East (UAE, Saudi Arabia).
We provide a one-stop solution for tax ID application and filing to make your taxes easier and easier!

[Tax discount package reduced to “freezing price”, up to 4,700 yuan!】

Take advantage of the offer now

Additionally, you can also refer to the list of one-on-one service providers in the Amazon SPN Service Provider Network:

UAE tax service provider

Saudi tax service provider

*Please note that the above information does not constitute tax, legal, or other professional advice and should not be used as such advice. If you decide to work with the service provider in this event, please contact that service provider directly. Amazon does not promise/guarantee any service provider or any of their services.