VAT applies to most supplies and importation of goods and services in the KSA at 15%, unless specifically exempted or subject to zero rate of VAT.

A non-KSA resident supplying goods to KSA customers through Amazon’s FBA channel is required to register for VAT, irrespective of the volume of sales or turnover since VAT registration will be required from the first date of supply in the KSA.

If the seller is doing pure Self-Ship and Amazon Easy Ship business where goods are sold from outside KSA to customers in KSA, they may not be required to register for VAT.

However, the KSA resident individual or business supplying taxable goods or services to KSA customers is required to register for VAT if the value of taxable supplies exceeds SAR 375,000 in the preceding 12 months or expected to exceed in the next 12 months.

Registering for VAT will lead to a number of associated compliance requirements. For example, filling VAT returns, issuing Tax Invoices to your customers.

For more information, refer to KSA VAT frequently asked questions