KSA or Kingdom of Saudi Arabia happens to be one among two States of the GCC for implementing the VAT in UAE on January 01, 2018. With VAT implementation, businesses in Saudi are presumed to be the VAT compliant by following guidelines which are prescribed in the law of Saudi Arabia and its regulations for implementations. The first move of acquiring one as VAT compliant is by registering under value added tax or VAT. This is due to the fact that only registered businesses get the allowance of charging VAT on supplies and even collect or remit them to government.
According to GCC Law Trademark, it happens to be a unifying one! It’s not something unitary that sets out the single set of the provisions and gets applied uniformly around GCC states in accordance with registration eligibility, enforcement of the trademark rights, and registration. It doesn’t either provide for the single or unitary registration or any enforcement system.
According to GCC Law, it includes a couple of provisions that amend current position in GCC states and even promise improving the trademark of the region registration as well as its protection system. The key provisions here include a definition of the mark, opposition and examination, marks, parallel imports, exclusivity, and even infringements.
In Saudi’s value added tax system, not every operating business is required for registration process. The KSA implementing regulations for VAT defines the threshold for the VAT registration. As a matter of fact, the defined VAT threshold is on basis of yearly supply value that is expected or made by businesses. Based on threshold, the registration for VAT in UAE gets classified in below-offered way!
- Mandatory Registration
- Voluntary Registration
- Exemption from the VAT Registration
What is Mandatory Registration?
The businesses having residence place in Kingdom and value of the taxable supplies exceeding SAR 375,000 must apply for mandatorily registration of VAT under the VAT in Saudi. Additionally, the registration is mandatory for businesses who can anticipate annual value of the supplies that are to be made in preceding twelve months exceeding threshold of about SAR 375,000.
What is Voluntary Registration?
Voluntary Registration happens to be the optional registration applied for some classes of the businesses in Kingdom. The businesses that are having a residence place in KSA and value of the taxable supplies exceeding SAR 187,500 but not SAR 375,000 in next 12 months get the license for registering under value added tax.
What is Exemption from Value Added Tax in Saudi?
The businesses with value of the annual supplies in Kingdom exceeding mandatory registration threshold but engaged in the zero-rated supplies are always exempted from requirements of the mandatory registration. Nevertheless, they can choose registering voluntarily.
Businesses yet to register VAT must calculate taxable supply values in next 12 months or can even estimate supply value made in preceding twelve months in order to determine registration eligibility. To meet the deadlines of mandatory registration, businesses have been classified in two categories on the basis of yearly value of the supplies.