On November 5, Amazon announced that it would open its Saudi website to Chinese sellers. As a potential stock in the Middle East market, Amazon has attracted great attention. Earlier, some old sellers from the United Arab Emirates entered Saudi Arabia in advance through internal invitation system and made a first step to make rich people's money. The bilateral trade between China and Saudi Arabia is frequent and Chinese goods are well received by tuhao. The new site in Saudi Arabia contains huge business opportunities. Today, Ambo will introduce you to Saudi VAT again and help sellers to go abroad in compliance.

According to the laws of the UAE and Saudi Arabia, if you are a non-UAE/Saudi resident selling goods to UAE/Saudi customers through the Amazon FBA channel, you need to register for VAT regardless of the turnover.

Saudi Arabia and the United Arab Emirates began to collect VAT on January 1, 2018, and imposed VAT on overseas companies without exemption quota. Local sales are required to submit registration materials to the tax bureau within 30 days. So, "Is it necessary to register for Saudi/UAE VAT after a certain sales quota?" In fact, there is a misunderstanding, to be different from the local enterprise registration conditions to show.

The registration of VAT in Saudi Arabia must be conducted on the Gazt system of the official website and submitted by the tax representative, who is jointly and severally liable. This means that if the overseas company does not pay VAT, the financial representative must.

The materials for registration of VAT in Saudi Arabia are as follows:

• China Business License
• Corporate license or ID card
• Application Form for Registration
  

       Foreign non-residents TIN VAT reg form

Faced with the COVID-19 crisis and record low oil prices, Saudi Arabia has enacted major fiscal austerity measures to boost the domestic economy, including an increase in the VAT rate from 5% to 15% from July 1.

The frequency of VAT filing in Saudi Arabia is determined according to the annual taxable sales, and the tax filing and tax payment should be completed before the end of the next month (the last day) of the filing period.

• Below 40MM SAR, quarterly reporting (natural quarterly reporting)
• Over 40MM SAR, report monthly

Taxes paid in Saudi Arabia and UAE can be paid directly by the seller to the tax bureau. The remittance account details of the Saudi tax bureau are as follows:

Saudi Arabia bank

Bank Name：RIYADBANK ALMURABA

Account Name：PYMT TRANS OUT OF KSA FOR ZAKAT AND INCOME TAX

SWIFT/(BIC)：RIBLSARI

IBAN：SA1620000002183203589940

* For details on how to pay, you can consult an AMB tax consultant.

Tax bureau in the Middle East for VAT registration, application of late, late night submit tax penalties are also relatively large, so we suggest that the seller should be planning to register as soon as possible, daily with tax on behalf of the finish, pay the taxes of a few days earlier, lest produce late registration or remittance is not successful in late pay taxes and produce unnecessary fines.

For customs clearance in Saudi Arabia, a local company in the Middle East is required to act as the Importer (IOR). The code used for customs clearance is called the "Customs Registration Code". Two conditions are required to apply for this code: 1.Registered Saudi local company, 2. Apply for import license.At present, we have received information from the relevant persons in charge of Aramex that if the seller does not have an IOR in the Middle East, the DXB import company recommended by Aramex can be used to make the IOR, and then the seller's VAT Acct Number can be used for customs clearance. The DXB import company will be responsible for customs clearance. However, it is said that the handling fee for entry customs clearance will be relatively high. Please consult the relevant personnel of Aramax for details.