What is the Tax Number in Saudi Arabia and How to Register and Verify It

This comprehensive guide provides you with everything you need to know about the tax number in Saudi Arabia, from the basic definition and registration steps, to verification and cancellation methods, in addition to answering the most frequently asked questions you may encounter in your business journey.

What is the Tax Number in Saudi Arabia?

The tax number in Saudi Arabia is a unique tax identification number consisting of 15 digits issued by the Zakat, Tax and Customs Authority to individuals and companies registered for value-added tax. It is also known as TIN (Tax Identification Number), and is considered the official tax identity for any establishment or individual in the Kingdom of Saudi Arabia.

The Saudi tax number is not just an ordinary number, but is the primary key for all tax and commercial transactions in the Kingdom. Without this number, no establishment can operate legally or issue value-added tax invoices.

Importance of the Tax Number in Saudi Arabia

The tax number in the Kingdom of Saudi Arabia holds great importance for establishments and individuals registered in the tax system, and is considered an essential element in the national economy for several reasons:

Legal and Regulatory Importance:

• Legal Compliance: Obtaining a tax number is considered a legal obligation for establishments that exceed the minimum sales threshold, and failure to obtain it exposes the establishment to legal accountability and financial penalties.
• System Compliance: The tax number ensures that establishments comply with local laws and regulations related to value-added tax.

Commercial and Financial Importance:

• Invoice Issuance: The tax number enables establishments to issue value-added tax invoices legally, which enhances their commercial credibility.
• Commercial Transactions: The tax number is considered an essential condition for dealing with large companies and government institutions.
• Obtaining Tax Benefits: It enables establishments to benefit from available tax advantages, such as value-added tax refunds on purchases.

Importance in Building Trust:

• Customer Trust: The tax number shows customers that the establishment operates legally and in an organized manner, which enhances trust in commercial transactions.

How to Register and Obtain a Tax Number in Saudi Arabia?

Registration in the Saudi tax system is a mandatory process for establishments and individuals who meet specific criteria, and obtaining a tax number is an essential step to ensure compliance with laws and benefit from available tax advantages. This process requires following organized steps through the electronic portal of the Zakat, Tax and Customs Authority (ZATCA), and its procedures vary according to the type of taxpayer and the nature of commercial activity.

Steps to Register for a Tax Number:

1. Determine Registration Eligibility:

• Mandatory registration for companies whose annual revenues exceed 375,000 Saudi Riyals
• Optional registration for companies whose revenues range between 187,500 and 375,000 Saudi Riyals

2. Access the Electronic Portal:

• Log in to the electronic portal of the Zakat, Tax and Customs Authority via the official link zatca.gov.sa

3. Choose Registration Type:

• Go to the General Services tab and then select Value Added Tax
• Click on Value Added Tax Registration

4. Fill Out the Electronic Form:

• Enter basic establishment information
• Determine the nature of commercial activity
• Attach required documents

5. Review and Confirm Data:

• Review all entered information to ensure its accuracy, then click "Confirm" to submit the registration request

6. Wait for Approval:

• The authority reviews the submitted information, and then the tax number is issued and sent to the registered email after approval of the request

How Do I Verify the Tax Number in Saudi Arabia?

Verifying the tax number in the Kingdom of Saudi Arabia is an important electronic service that allows consumers and companies to verify the legitimacy of commercial establishments and their compliance with tax regulations. The Zakat, Tax and Customs Authority provides this service free of charge through its electronic portal to ensure transparency and combat tax evasion.

Steps to Verify the Tax Number:

1. Visit the official website of the Zakat, Tax and Customs Authority zatca.gov.sa
2. Select "Electronic Services" from the main menu
3. Click on "Verify Value Added Tax Registration"
4. Select search type (by tax number or commercial registration number)
5. Enter the 15-digit tax number in the designated field
6. Write the visual verification code and agree to the terms and conditions
7. Click the "Search" button to display results that include the establishment name and tax registration status

How to Cancel the Tax Number Step by Step

Canceling the tax number in the Kingdom of Saudi Arabia is an official procedure that establishments can perform in specific cases, such as stopping commercial activity or sales falling below the required registration threshold. This procedure requires meeting certain conditions and submitting a request through the electronic portal of the Zakat, Tax and Customs Authority.

Steps to Cancel the Tax Number:

1. Log in to the electronic portal of the Zakat, Tax and Customs Authority zatca.gov.sa
2. Go to the "Indirect Taxes" tab and then select "Value Added Tax"
3. Click on the "Cancel Value Added Tax Registration" service
4. Select "Enter Service" to begin the process
5. Review the automatically displayed data and fill in the required information and ensure its accuracy
6. Attach required documents (such as commercial registration cancellation certificate if necessary)
7. Check "I agree to the terms and conditions"
8. Review all entered data and click "Cancel Value Added Tax Registration"
9. Wait for authority approval of the request and receive cancellation confirmation

What is the Difference Between the Tax Number and the Unique Number?

The unique number consists of 10 digits and is granted to all taxpayers (individuals and establishments) upon registration with the authority, and is used for various purposes including zakat and other taxes, official correspondence with the authority, submitting returns, opening files, and paying dues. It is considered the basic number for dealing with the Zakat, Tax and Customs Authority.

As for the tax number, it consists of 15 digits and is granted only to establishments registered for value-added tax, and is used in issuing electronic and tax invoices, government tenders, and tax auditing. This number is designated for companies and establishments subject to value-added tax.

Conclusion

The tax number in the Kingdom of Saudi Arabia is an essential element in the modern tax system, aimed at organizing commercial activities and ensuring transparency in financial transactions. This 15-digit number is considered the official tax identity for every establishment registered for value-added tax.

The Zakat, Tax and Customs Authority provides comprehensive electronic services including registration, verification, and cancellation, making it easier for establishments and individuals to manage their tax obligations effectively. This integrated system contributes to building a more organized and transparent economy in the Kingdom.

It is important for registered establishments and individuals to ensure they continuously update their tax data and verify the accuracy of the tax number, especially when changes occur in the nature of activity, address, or basic information. It is also recommended to periodically verify the tax registration status to ensure full compliance with applicable laws and regulations.

Frequently Asked Questions About the Tax Number

1. What is the validity period of the tax number?

The tax number is valid for an indefinite period as long as the establishment remains registered for value-added tax and meets registration conditions.

2. Can tax number data be modified?

Yes, registered data can be modified through the electronic portal of the Zakat, Tax and Customs Authority.

3. What are the penalties for not registering?

Penalties start from 10,000 Riyals for registration delay, and may reach higher multiples depending on the delay period.

4. Is the tax number different from the commercial registration number?

Yes, the tax number is completely different from the commercial registration number and consists of 15 digits.

5. When should tax registration be renewed?

The tax number does not require renewal, but data must be updated when changes occur in the establishment.

6. Can individuals obtain a tax number?

Yes, individuals engaged in commercial activities and exceeding the minimum sales threshold can register.

7. What is the minimum sales threshold for mandatory registration?

375,000 Saudi Riyals annually for mandatory registration, and 187,500 Riyals for optional registration.

8. How long does it take to obtain a tax number?

The approval process usually takes 3 to 7 working days after submitting a complete application.

9. Can the commercial registration number be used to verify the tax number?

Yes, the tax number can be verified using the commercial registration number through the electronic portal of the Zakat, Tax and Customs Authority, where the service provides two search options: either directly by tax number or by commercial registration number.

10. What is the tax number for Al Rajhi Bank?

The tax number for Al Rajhi Bank is: 300000434710003. This number can be used to verify transaction validity or when needed in invoices and official documents related to banking services.