Amy Chat on Cross-Border Important Notice! VAT Registration is now mandatory for Middle Eastern stations! The penalty exemption policy is about to expire!
VAT registration is now mandatory for Middle Eastern stations and the penalty exemption policy is about to expire, according to Amy Chat on Cross-Border Important Notice
Hello, I’m Amy, here to assist you on your cross-border journey of gold digging.
Recently, Amazon has issued an important reminder to sellers on the Middle East site, requiring all FBA sellers on the Middle East site to upload their VAT tax number as soon as possible, otherwise it will result in fines and account suspension. Currently, the cost of registering a Middle East tax number is low and the process is fast, so sellers should seize this opportunity and register as soon as possible!
Tax Bureau and Amazon Platform Requirements
⭕Firstly, according to the requirements of the tax bureau and local value-added tax laws, if a non-Middle East seller supplies taxable products to a personal seller within the Middle East, then the seller must register for Middle East VAT within 30 days of the first sale.
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⭕Secondly, Amazon has also issued an important reminder: FBA mode sellers are obliged to submit a VAT application to the tax bureau within 【30 days】 after the FBA order is issued, and late applications or non-compliant sales without a tax number may result in accumulated tax bureau fines and account suspension 🚫. At the same time, Amazon may disclose the seller’s account information to the Middle East tax bureau from time to time.
Therefore, sellers who are registered in the Middle East must register for VAT value-added tax number.
What if the deadline has passed❌?
Sellers who failed to register in time will face various fines:
1. Late registration fine: 10,000 SAR / 20,000 AED
2. Late declaration fine: 5%-25% / 1000AED per declaration of tax payable
3. Late payment fine: 5% / 1%-4% of the declared tax payable
The Saudi tax bureau implemented a fine exemption policy in June last year. This exemption policy does not include the actual tax payable, but includes fines caused by tax non-compliance. For example, late registration fines for VAT, late declaration of VAT and income tax, and late payment fines.
⚠⚠⚠Last Chance! Saudi Arabia’s Fine Exemption Policy Countdown ⏰
Saudi Arabia’s tax fine exemption policy will expire on May 31, 2023. Before that, you have the opportunity to apply for exemption of tax fines incurred before November 30, 2022.
How to Register for VAT at Low Cost? 💰
Both Saudi Arabia and UAE VAT registration must be done on the local tax authority’s official website. Finding a reliable tax agent to register is a more convenient way.
If you encounter the problem of [“unable to apply or update individual passport”], which causes the Saudi or UAE tax number application to be blocked, we now support the use of identity cards for UAE & Middle East VAT number registration, without the need to provide a passport! Simplified materials, fast approval.
How to Upload VAT Number?
❓After the VAT number registration is completed, how to upload it?
🔑 Upload Path
Seller Platform>Settings>Tax Settings>Add VAT/GST Registration Number
(Reference image for successful upload and verification of tax number)
💡Please pay attention when uploading:
1️⃣Please select the correct country/region of sale, such as the UAE or Saudi Arabia, not your nationality (such as China), otherwise the tax number will be rejected;
2️⃣Please ensure that the legal company name filled in on the seller platform (Seller Platform>Settings>Account Information>Business Information>Company Name) is consistent with the legal company name on your tax certificate.
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