Do I need to register for VAT as an Amazon Middle East site?
August 9, 2022
Amazon's UAE and Saudi sites have many advantages and huge business opportunities. They are still a blue ocean waiting for Chinese sellers to make money. So for the Middle East FBA, do I have to register for VAT?
The answer was, “Yes!” As soon as they heard that there is a VAT requirement in the Middle East, the sellers and friends couldn't help but feel excited. Don't worry, tax compliance in the Middle East isn't that difficult!See what industry leader Anker Direct (Anker) said:
We confirm and understand the specific VAT compliance requirements both ways through our Amazon account manager and company finance. We have always attached great importance to tax compliance. We feel that registration and VAT payment should not be a burden. Tax compliance is a basic requirement to ensure the safe operation of our account. We will also keep an eye on changes in VAT policies and regulations to ensure tax compliance. All in all, legal tax payment starts with me.
Well, Xiaobian will talk to you today about tax considerations and related welfare policies in the Middle East.
Tax requirements for UAE and Saudi sites
According to the requirements of the UAE/Saudi tax authorities and local VAT laws, if you are not a UAE/Saudi resident and sell products to local residents in the UAE/Saudi Arabia through Amazon Logistics Services (FBA), you are obligated to register a local VAT number within 30 days of the first FBA sale; if you only sell by MFN (self-shipping), you are not required to register a VAT number.
Don't worry, tax compliance in the Middle East is actually quite simple!Xiaobian has compiled a series of preferential policies to make it easy for you to operate the Amazon Middle East website!
01 Saudi tax penalty relief policy
Good news, good news. In response to the impact of the COVID-19 pandemic on the Saudi economy, the Saudi Tax Authority has decided to implement a tax penalty exemption policy:
Tax penalty exemption conditions
From June 1 to November 30, 2022, you can apply for exemption from tax penalties as long as you meet the following conditions:
● Submit an application to register a Saudi VAT number between June 1 and November 30, 2022
● Submit all required returns
● Pay all applicable taxes (installment payment is supported)
Types of tax penalty exemptions
Depending on your specific circumstances, the tax penalties you can apply for exemption may include penalties due to late registration, late filing, late payment, etc.
02 Limited time low price tax service offer
Low price offer for a limited time!
In order to help sellers complete tax compliance at a low cost, several tax service providers have launched a limited-time discount on VAT number registration and filing in the Middle East. Professional, easy, time-saving and labor-saving. Super discount, up to 3,300 yuan off!
Check out the promotional package now
Note: Amazon does not provide tax advice; a list of service providers is provided as reference information only. You can also work with a tax advisor other than the Amazon service provider list. If you decide to work with a listed service provider, please contact that service provider directly. Amazon does not commit/guarantee any service provider or any of their services
03 Middle East VAT number registration materials have been simplified
If you encounter the problem of “not being able to apply for or renew a personal passport” and your Saudi or UAE tax number application is blocked. Currently, many tax service providers have reported that the UAE and Saudi Arabia already support the use of an ID card to register a VAT number, and there is no need to provide a passport!
Once the tax authorities have issued you a VAT number, you need to upload your tax number to Seller Central as soon as possible!
💡 Tip: How do I upload my VAT number after registration is complete?
Upload path
Seller Central > Settings > Tax Settings > Add VAT/GST Registration Numbers
Please be careful when uploading
❶ Please select the correct sales country/region, such as the UAE or Saudi Arabia, and not your nationality (such as China), otherwise the tax number will be rejected;
❷ Please make sure that your [Legal Company Name entered in Seller Central] (Seller Central > Settings > Account Information > Business Information > Company Name) matches your [Legal Company Name on the Tax Certificate].
The penalty exemption policy and promotions are limited for a limited time, so please seize the opportunity and act quickly!Contact a tax agent to begin your Middle East tax registration now!