GTL Summary:

Article 50 mandates VAT registration for residents in a Member State if the value of their annual supplies exceeds the Mandatory Registration Threshold of SAR 375,000. This threshold may be amended by the Ministerial Committee after three years. Non-residents must register regardless of turnover if they are liable to pay tax in the State; they may appoint a tax representative, subject to Article 43(2). Additionally, a Taxable Person making exclusively zero-rated supplies may apply for exemption from mandatory registration, subject to local Member State conditions. This ensures proper compliance while offering flexibility for specific business structures.

Document Type: Tax Law Article
Law: Common VAT Agreement
Article Number: 50
Country: 🏳️ GCC
Location: Chapter 10 - Obligations › Part 1 - Registration
Order: 50
Last updated at: 2025-12-19 09:23:02 UTC

Chapter 10 - Obligations

Part 1 - Registration

Article 50 - Mandatory Registration

  1. For the purposes of implementing this Agreement, a Taxable Person shall be obliged to register if:

    1. he is resident in any Member State;

    2. the value of his annual supplies in that Member State exceeds or is expected to exceed the Mandatory Registration Threshold.

  2. The Mandatory Registration Threshold shall be SAR 375,000 (or its equivalent in the GCC State currencies). The Ministerial Committee has the right to amend The Mandatory Registration Threshold after it has been in force for three years.

  3. A non-resident of a Member State shall be required to register in that State regardless of his business turnover if he is obliged to pay Tax in that State under this Agreement. Registration can be done directly or through the appointment of a tax representative with the consent of the Competent Tax administration. The tax representative shall take the place of the Non-Resident Person in all its rights and obligations provided for in this Agreement, subject to the provisions of Article 43(2) of this Agreement.

  4. A Taxable Person who makes only zero-rated supplies may request to be excluded from the Mandatory Registration requirement for Tax purposes in accordance with the conditions and provisions determined by each Member State.

←
Previous
Article 49 - The Right to Deduct Input Tax Paid Prior to the Date of Registration
Next
Article 51 - Voluntary Registration
→
Fast-loading version for search engines - Click here for the interactive version