Except as may be otherwise stated in the Agreement entered into, you will be responsible for determining whether taxes apply to the sale of your products on Amazon. Amazon is not responsible to collect, report, or remit any taxes arising on any of your transactions.
However, if a taxing authority requires us to pay any of your taxes, you will promptly reimburse Amazon for such amounts paid.
Pricing
All prices published on the Amazon webpage must include the amount of any applicable VAT. You should consider the price for your products as inclusive of any VAT, customs duty, excise tax or other tax that you may be required to remit in connection with such sale.
Shipping from a location outside of KSA
If your products are shipped from outside of KSA, the recipient of the product may be required to pay, upon delivery, an amount related to assessed import VAT, and other import taxes or duties. Such taxes and duties are not collected by Amazon and are in addition to any sales proceeds.
Am I required to charge VAT on my sales of goods through Amazon?
The obligation to charge VAT only extends to persons who are registered or are required to register for VAT in KSA. If you have a requirement to register for VAT, then you will need to consider the requirement to charge VAT on your sales of goods and services to customers in the KSA. Both individuals and companies carrying on business activities must determine their requirement to be registered for VAT.
If you are VAT registered in the KSA and have received a VAT registration number issued by General Authority of Zakat & Tax (GAZT), you can enter your information relating to VAT on the selling center.
Am I required to be VAT registered to sell on Amazon?
As a domestic seller, under KSA VAT Laws, you may either be required to register mandatorily, or may do so voluntarily. If you are VAT registered, you should provide Amazon with your VAT number.
Mandatory Registration
If you are resident in the KSA and the total value of your supplies and imports made within the KSA exceeds the mandatory registration threshold of SAR 375,000 during the previous 12 months; or you anticipate that the total value of your supplies or imports will exceed SAR 375,000 in the next 30 days, then you must register for VAT.
If you are a non-resident making taxable supplies in the KSA, then you are required to register for KSA VAT, irrespective of the value of your taxable supplies (i.e. there is no VAT registration threshold).
If you are not already registered for VAT in the KSA, then you must monitor the value of your sales and imports on an ongoing basis to understand whether they result in a requirement to register for KSA VAT.
Voluntary Registration
Voluntary registration is an option available to businesses that do not have a turnover in excess of the Mandatory Registration Threshold but would still like to be registered for VAT.
If you are resident in the KS, then you can voluntarily register for VAT if the value of your taxable supplies or taxable expenses and imports, exceeds the optional VAT registration threshold of SAR 187,500 in a twelve month period, or if you are expected to exceed the threshold in the next 30 days.
What if I already have a company or other registration number in the KSA?
The VAT registration application is a standalone process and you will be issued with a Tax Registration Number (VAT Number) that is different to the number obtained in relation to other taxes or for other business licensing purposes. This number must be used for the purposes of conducting your VAT related business activities only.
If you have a local presence in the KSA that is associated with the supply of goods/ provision of services through our Services, you must provide us with the KSA address for this local presence as your business address on Seller Central. To determine our own tax obligations, Amazon will consider you as a non-resident seller where the business address provided on Seller Central is a non-KSA address. Where the business address is a non-KSA address, it is considered as a declaration of the following by you:
- Either (1) you do not have a place of residence (being a place of establishment or a fixed establishment as defined by the KSA VAT Law) in the KSA. A place of residence includes, but is not limited to, a branch, representative office or a similar establishment; or (2) if you have a place of residence in the KSA, then it is not connected with your use of any of our Services; and
- You do not have any employees or personnel (including, but not limited to, company directors) based in the KSA in relation to use of any of our Services.
Consult your tax advisor if you are unsure of your residential status in the KSA. In an event of any change in your residential status, please update your Seller Central account details with your KSA business address on the Account Setting page.
Do I need to register for VAT in KSA as an international seller?
Yes. If you are a non-KSA resident selling goods that are located in the KSA to a KSA customer, then you will be required to register for VAT irrespective of the level of turnover from such sales.
A non-established business selling goods from KSA shall be subject to a NIL VAT registration threshold. VAT registration will be effective from the date on which you started making sales in the KSA.
How can I apply for VAT registration and obtain a KSA VAT registration number?
In KSA, you can register online on the GAZT’s website. Registering for KSA VAT may lead to a number of associated compliance requirements, including the requirement to file returns and to issue KSA Tax Invoices to your customers. Consult your tax advisor for more information.
