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Saudi Arabia Valued Added Tax (VAT) FAQ

Important: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. You should consult your professional advisers if you have any questions.

The Saudi Arabia government has rules in place requiring providers of remote services to calculate and collect Saudi Arabia VAT.

Starting January 1, 2018, unless a Saudi Arabia-resident seller has provided their VAT ID (Tax Identification Number – TIN), Amazon will collect and remit Saudi Arabia VAT at a standard rate of 5% on monthly subscription fees and other Selling on Amazon fees.

Sellers who are located in Saudi Arabia and sell on Amazon websites can provide Amazon with their Saudi Arabia VAT ID and will not be charged the 5% Saudi Arabia VAT on their Selling on Amazon fees.

Follow the steps below to provide Amazon with your Saudi Arabia VAT ID:

  1. Sign in to your Seller Central account.
  2. Under Settings choose Account Info.
  3. In the section Tax Information, click on VAT information.
  4. From the list of countries, select Saudi Arabia.
  5. Add your VAT ID.
  6. Select I accept and acknowledge all conditions set out in the Tax registration agreement.
  7. Click Save.

FAQ

How does this apply to my selling account?

If you are a resident of Saudi Arabia, Selling on Amazon Fees charged to your selling account will be subject to Saudi Arabia VAT unless you have provided Amazon with a valid VAT ID.

How do I obtain a Saudi Arabia VAT ID?

You may be able to register for a Saudi Arabia VAT ID online. For more information, see the Taxation in Saudi Arabia official website.

I am not a Saudi Arabia resident. Will Amazon charge Saudi Arabia VAT on my account fees?

If you are not a resident of Saudi Arabia, Selling on Amazon fees through your selling account will not be subject to Saudi Arabia VAT. Consult your tax advisor to understand if you have any VAT obligations in Saudi Arabia.

How do I provide my VAT ID to Amazon?

You can provide your Saudi Arabia VAT ID to Amazon by signing in to Seller Central, clicking Settings > Account Info, and click VAT Information under the Tax Information module.

How is Saudi Arabia VAT charged?

Amazon will charge sellers a standard rate of 5% VAT on Selling on Amazon fees and monthly subscription fees if the seller has not provided a valid Saudi Arabia VAT ID.

Why is Amazon continuing to collect Saudi Arabia VAT when I have provided a valid Saudi Arabia VAT ID?

Amazon will not calculate or collect Saudi Arabia VAT if you have already provided a valid Saudi Arabia VAT ID. Amazon calculates VAT on fees when an order is placed and charges it to the Seller account when the order is shipped. Therefore, Saudi Arabia VAT may have been collected on orders placed prior to the time you provided your VAT ID.

I updated my information to reflect my current address which is outside Saudi Arabia. Why is Amazon continuing to collect Saudi Arabia VAT?

Amazon will not calculate or collect Saudi Arabia VAT on your selling account fees unless the information you have provided at the time of the transaction indicates you are a resident of Saudi Arabia. Amazon calculates Saudi Arabia VAT on fees when an order is placed and collects it when an order is shipped; there may have been existing pending orders before you updated your current address and payment information.

Go to Seller Account Information, and review each section to ensure that all of your information is complete and accurate. Note that there may be several addresses and payment methods associated with your selling account.

I am no longer a resident of Saudi Arabia, and I have updated all my information to reflect my current address. Can Amazon refund previously-charged Saudi Arabia VAT to my selling account?

Amazon is required to charge and remit Saudi Arabia VAT based on the information in your seller account. At the time the Saudi Arabia VAT was collected, Amazon had enough information to associate your account with Saudi Arabia. Amazon cannot refund Saudi Arabia VAT without a valid Saudi Arabia VAT ID.

How do I receive a refund for previously-charged Saudi Arabia VAT on my selling account?

To request a refund, you will need to provide your Saudi Arabia VAT ID to Amazon on the Tax Registration Information page in Seller Central. Then you will need to contact Amazon Seller Support to request a refund of the Saudi Arabia VAT charged to your selling account.

Saudi Arabia VAT refund requests can take up to 90 days to process. You will receive an update from Amazon informing you about the estimated date when you can expect to receive a refund in your selling account, if your request was approved.

Will Amazon provide me with an invoice for any Saudi Arabia VAT collected on my monthly subscription fees and Selling on Amazon fees?

Amazon will not provide an invoice to sellers who are charged Saudi Arabia VAT on their monthly subscription fees and Selling on Amazon fees. However, sellers that have provided their VAT ID will receive a monthly invoice. Your monthly invoice will be emailed to the primary email address mentioned in your selling account.

You can also view your monthly invoices by signing in to Seller Central > Reports > Tax Document Library > Seller Fee Tax Invoices.

I have added my Saudi Arabia VAT ID in my selling account. Can Amazon send me updated invoices with my Saudi Arabia VAT ID?

Amazon cannot modify prior invoices to reflect changes made to your selling account. However, if you believe you have been charged VAT in error, or since you have had a VAT ID, you may request a refund. Once you have provided your VAT ID to Amazon, you will receive monthly VAT invoices via email.

Can Amazon help me with my tax return?

While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please contact a tax advisor if you have any questions about taxes or need assistance with your tax returns. We have created a list of third-party tax advisors solely as a resource for our sellers.

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