Managing VAT requirements for Shopify billing in Saudi Arabia and the United Arab Emirates
This page provides a detailed guide on how Value-Added Tax (VAT) charges are applied at 15% in Saudi Arabia and 5% in the United Arab Emirates (UAE). It also outlines the steps to register your tax identification number to potentially qualify for VAT exemptions
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Understanding VAT obligations for Shopify stores in Saudi Arabia
If your store is located in Saudi Arabia, then you're charged 15% VAT. If you have a VAT number, then your Shopify bill might be exempt from VAT charges. You need to enter a valid 15-digit Tax ID number into your Shopify admin and certify that you're a VAT taxpayer.
Steps:
From your Shopify admin, go to Settings > Billing.
Click Billing profile.
In the Tax registration section, click Enter Tax ID number.
Enter your Tax ID number.
Select I certify that I am a VAT taxpayer in Saudi Arabia and I can provide the VAT certificate on request.
Click Add Tax ID number.
Navigating VAT requirements for Shopify stores in the UAE
If your store is located in the United Arab Emirates (UAE), then you're charged 5% VAT. If you have a VAT number, then your Shopify bill might be exempt from VAT charges. To be exempted, you need to enter a valid 15-digit Tax ID number into your Shopify admin and certify that you're a VAT taxpayer.
Steps:
From your Shopify admin, go to Settings > Billing.
Click Billing profile.
In the Tax registration section, click Enter Tax ID number.
Enter your Tax ID number.
Select I certify that I am a VAT taxpayer in UAE and I can provide the VAT certificate on request.
Click Add Tax ID number.