KSA Sellers VAT Help Page

Table of Contents

  1. About VAT on your Sales through Souq.com
  2. About VAT on Sales for Customers in KSA
  3. VAT Rates
  4. Registration obligation in KSA
  5. Manage Your VAT Registration Number
  6. About Entering your VAT Registration Number
  7. About VAT Invoices to the Customers
  8. About VAT on the commission fees charged by Souq.com
  9. About VAT on items returned

 

  1. About VAT on your Sales through Souq.com 
    Kingdom of Saudi Arabia (“KSA”) and the United Arab Emirates (“UAE”) will introduce VAT from 1 January 2018. VAT is a consumption tax that is charged at every stage of the supply chain. VAT will be imposed on most domestic supplies of goods and services at a standard rate of 5% with few exemptions and zero-ratings.

    If you are VAT registered in the KSA, you are required to charge 5% VAT on all orders shipped to customers in the KSA, unless the sale is subject to the 0% VAT rate.

    It’s the responsibility of each Souq.com Marketplace seller to ensure they are VAT-compliant and you should seek professional advice if you are unsure of your obligations.

 

  1. About VAT on Sales for Customers in KSA
    As a KSA VAT registered Marketplace Seller you are required by law to collect VAT on orders for goods shipped within KSA.

    For customers with a KSA delivery address, VAT shall be charged in accordance with the KSA VAT local legislation. All the prices published in the Souq.com webpage must include the amount of any applicable VAT.

 

  1. VAT Rates
    VAT Rates may vary depending on the destination country and items being delivered.

    The rate of VAT that applies to most supplies of goods and services in the KSA is 5%.

    In limited circumstances, certain health and education related goods may be subject to the zero percent (0%) rate of VAT.

 

  1. Registration obligation in KSA
    All companies, businesses or entities which make an annual taxable supply of goods and services in KSA in excess of SAR 375,000 are legally required to register for VAT.

    It is your responsibility to ensure that duplicate applications are not submitted. The VAT registration application is a standalone process that is different to the number obtained in relation to other taxes. This number must be used for the purposes of conducting your VAT related business activities only.

 

  1. Manage Your VAT Registration Number
    You can enter your information relating to VAT on the selling center here.

 

  1. About Entering your VAT Registration Number
    You can input your information relating to VAT on the selling center here.

 

  1. About VAT Invoices to the Customers
    As a seller on Souq.com, it is your responsibility to comply with the VAT Law at all times.

    Whether registered for KSA VAT, for any goods or services supplied after 1 January 2018, you will be required to issue a valid tax invoice. The particulars to be contained a tax invoice are specified in the Article (53.5) of the VAT Implementing Regulations of KSA.

    Upon the delivery of the order, as a seller, you should expect a request from the customer to submit a Tax Invoice through the Financials tab.

 

  1. About VAT on the commission fees charged by Souq.com
    The introduction of VAT will impact on the total amount of the commission charged by Souq.com to your business, which will include VAT at a rate of 5% from 1 January 2018.

    The commission will be charged over the VAT exclusive prices displayed by the VAT Registered Marketplace sellers on Souq.com webpage. For the non-VAT registered Marketplace sellers, the commission will be charged over the final price displayed on Souq.com webpage.

    The electronic invoices in connection with the commission fee charged by Souq.com will be available in your log in account through the Orders tab.

 

  1. About VAT on items returned
    In case of return orders, VAT will need to be refunded to the customer by way of a Tax credit note. It is an obligation of the Marketplace Seller to provide the customers with a valid Tax credit note.

    Upon the return order, you should expect a request from the customer to provide with a Tax Credit Note through the Financials tab.

 Read more about KSA VAT FAQs.

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