Selling online? VAT basics for e-commerce stores

Online stores follow the same VAT rules as any other business — the channel doesn't change the tax.

Registration

The usual thresholds apply: registration is mandatory once taxable sales exceed SAR 375,000 over 12 months, and optional above SAR 187,500.

Prices

Prices shown to consumers in the Kingdom must include VAT. Show the VAT-inclusive price on product pages and at checkout.

Invoices

Send a simplified tax invoice with each order, issued from a compliant system with a QR code. Business customers who give their VAT number should receive a full tax invoice.

Platform and service fees

• Marketplace commissions and payment gateway fees are services you buy — keep their tax invoices to deduct input VAT.
• Fees charged by suppliers outside the Kingdom may need the reverse charge.

Delivery and returns

• Delivery charges you bill to customers are part of the sale and carry VAT.
• Refunds for returned orders need a credit note.

Try the VAT calculator to check your prices.