The Saudi Tax Administration's fine exemption policy has been extended again, and Amazon Saudi sellers quickly register to complete VAT compliance

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The Saudi Tax Administration's fine exemption policy was extended again, and Amazon Saudi sellers quickly registered to complete VAT compliance

An overview of the highlights of this article:
What is a VAT number?Do I have to register?How to complete VAT compliance, analysis of related common problems.
Time required to read this article: 5 minutes

The Saudi Arabian Taxation Authority (ZATCA) has announced the extension of the penalty exemption policy until June 30, 2025. Sellers who have completed tax compliance before June 30, 2025 can apply for a reduction in penalties due to late registration, late filing, late payment, etc. Sellers will have more time to complete VAT number registration and upload. We recommend that everyone act as soon as possible to avoid missing the final exemption period and be fined!

What is a VAT number and do I have to register?

Value Added Tax (VAT) is a type of tax levied on consumers. It is collected through certain circulation links of goods and services and paid to national tax authorities through VAT returns.

If you are a non-Saudi resident and sell 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. Therefore, FBA sellers who have not registered a tax ID should hurry up and avoid missing the exemption policy period.

How do I achieve VAT compliance?

The first step is to contact the service provider to complete tax ID registration

1. Complete and submit the VAT registration form on the ZATCA website
Due to the complicated registration process for Saudi VAT numbers, Amazon recommends that you contact a tax advisor to assist with registration (you can scan the Amazon Service Provider Network QR code at the end of the document) to complete tax compliance more quickly.

2. Email ZATCA's request for additional information
ZATCA may also ask about the value of the taxable goods in the past 12 months/the expected value of the taxable goods in the next 12 months. If your sales revenue exceeds 1 million Saudi riyals (SAR) in any given 12 months, ZATCA may require a bank guarantee.

3. Approved (3-5 business days)
If you have submitted a complete application to ZATCA and have not received a response within 5 business days, please contact your tax service provider immediately.

Step 2: Upload a valid tax ID to Seller Central

1. Path: Seller Central > Settings > Tax Settings > Add VAT/GST Registration Number

2. Select the correct [Country/Region]: Saudi Arabia

3. Fill in the “VAT Registration Number” on the tax certificate under “VAT/Goods and Services Tax Registration Number” (numbers only)

4. Select [Address where the VAT/GST registration number is located]: Select the registered address with the blue label

Step 3. Confirm that your tax ID has been successfully verified (important)

1. If and only if the tax ID status shows “Verified” in green, it means that your VAT number has been successfully verified.

2. When the tax ID status is displayed as green [Accepted] or red [Rejected], please correct the relevant information promptly.

● [Country/region] selection problem
Please check if the “Country/Region” selection matches your site (Saudi Arabia); if “China” is selected by mistake, please delete this record, then re-upload the tax ID and select the correct country/region.

● Company name mismatch problem
Please (via path: Seller Central > Settings > Account Information > Business Information > Company Name) confirm whether the legal company name you entered in “Seller Central” matches the legal company name on the “Tax Certificate”.

If it doesn't fit, Amazon recommends you 👇
🔹 After changing the “Legal Company Name” on Seller Central to match the tax certificate (the amendment will not trigger a relevant review, such as KYC), re-upload the tax number and wait for verification;
🔹 After changing the name on the tax certificate (contact the tax agent) to match Seller Central, re-upload the tax number and wait for verification.

● The tax ID was rejected due to other specific reasons, and you need to check and contact your tax agent to fix it yourself.

Frequently asked questions

Q1. What information do I need to provide to apply for a Saudi tax ID now?

Please complete the VAT registration form and provide relevant information/documents as required by the Saudi General Administration of Taxation and Customs (ZATCA), which may include but is not limited to:
🔹 Application form
🔹 Business license
🔹 ID card
🔹 Logistics contracts
🔹 Logistics invoice
🔹 Sales Report
🔹 Amazon Services Business Solutions Agreement
*This information is for reference only, please provide it in accordance with the actual requirements of ZATCA. Amazon is not responsible for the accuracy of any information. If you need more information on this, please contact your tax service provider.

Q2. How long does it take to get a Saudi tax ID from the beginning of the application?What should I do if the data meets the requirements but does not have a tax ID?

The seller should receive approval of the VAT registration application within 3-5 business days after providing all information to ZATCA. If you have submitted a complete application to ZATCA and have not received a response within 5 business days, please contact your tax service provider immediately.

Q3. Will the tax ID registration process affect the performance of my store if it takes a long time to register and is late before the sale starts?

Due to the special circumstances of Saudi tax numbers, the timing of your tax number registration will not directly affect store performance for the time being. However, as required by the policy, you are still obligated to meet your VAT obligations on time, so please register as soon as possible to avoid future restrictions on your account due to non-compliance.

Q4. Will Saudi Arabia withhold VAT from Amazon in the future like Europe?

Currently, the Middle East site has not implemented VAT withholding. Please follow Amazon Seller Central for the latest information.

Q5. Consumers sometimes need VAT invoices with QR codes. Now that the tax number is issued, can Chinese sellers issue this type of invoice for consumers?Or can I just provide a pro forma invoice?

For your sales transactions, you are responsible for complying with all legal and tax/VAT requirements to issue and deliver compliant invoices to customers. Sellers who are not VAT registered should provide a commercial invoice to the buyer without collecting VAT.

Q6. I can't continue to register my tax number due to a lack of a passport, what should I do?

If you encounter a “unable to apply for a passport” during the tax registration process (for reference only, please refer to the actual registration situation):
🔹 You can contact a tax advisor to support the registration of a tax number using an ID
🔹 Try to authorize an employee with a passport and provide a power of attorney
🔹 Try to communicate with the Immigration Bureau, explain the situation truthfully and provide the following supporting documents 👇
① Your contract with a third-party service provider (the contract states that a passport is required)
② The local Saudi tax office requires sellers to provide a screenshot of the passport policy document when registering a tax ID
③ Other information, such as Amazon store screenshots, order information, non-travel guarantee, etc.

Q7. What if I can't provide my VAT number on Seller Central?Will it affect my account status or interfere with my Amazon Logistics business in Saudi Arabia?

As an Amazon seller, you are responsible for complying with applicable tax laws in accordance with the Amazon Services Business Solutions Agreement. Although you can continue to sell on Amazon stores without providing your VAT registration number to Seller Central, be aware that tax authorities may impose fines and penalties for non-compliance.

Where can I get help if I have more questions?

1. For the tax number registration process and precautions, you can copy the following link to your browser and refer to the tax number registration process officially issued by the Saudi Inland Revenue Service 👇
https://m.media-amazon.com/images/G/40/Central-compliance-team/ZATCA_KSA_VAT_APPLICATION_NON-RESIDENT_SELLER_GUIDE.pdf

2. If you encounter any issues in the Middle East VAT compliance process, you can copy the following link to your browser to view the guide 👇
https://m.media-amazon.com/images/G/01/MENA/MENA_FAQ_Handbook_2.24.pdf

3. If you have more questions about invoicing buyers, you can copy the following link to your browser for details 👇
https://sellercentral.amazon.sa/help/hub/reference/G200506180?mons_sel_mkid=amzn1.mp.o.A17E79C6D8DWNP&mons_sel_mcid=amzn1.merchant.o.A1ME0IFQ08G3LJ&mons_sel_persist=true

Tax compliance is an important part of maintaining account health, and delays in the penalty exemption policy provide a valuable window of time. Sellers who have successfully obtained a Saudi tax ID, please upload the tax number to Amazon Seller Central as soon as possible!Sellers who have not yet started registration, please complete the registration and upload of the tax ID as soon as possible.

If you run into any issues during the registration or upload process, please carefully read the steps in the compliance manual above to ensure that every step is accurate, or consult your tax advisor for professional help.

Note: Amazon does not provide tax advice; it only provides a list of service providers as an informational resource, and you are free to use tax advisors that are not part of Amazon's service provider network. If you decide to hire any of the service providers listed on this page, you will contract directly with that provider, and Amazon does not guarantee any service provider or any of its services. At the same time, the compilation of relevant laws, regulations, policies and registration requirements in this article is for reference only, is not exhaustive, and does not represent Amazon's interpretation of relevant laws, regulations, policies, and registration requirements or legal or tax advice. If you have any questions about relevant laws, regulations, policies and registration requirements, please contact your competent authority or your legal and tax advisor.

Note: The above information was published in April 2025. Follow the Global Store Opening website to keep up to date with the latest changes.

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