For the entire geopolitical situation in the Middle East, it is currently relatively stable and has a market. Therefore, we are now starting to develop the Noon platform. We have learned about several service providers from time to time, and each service provider has its own unique products, prices, and services (the market is quite chaotic, which is difficult for beginners to distinguish). Today, we have compiled the necessary materials and precautions for processing, hoping to be helpful to our startup partners

For a novice, how to identify and choose which one is suitable has become a puzzle. A seller friend told her to be cautious when choosing a vat service provider because she has personally experienced two instances of being "scammed". The first time was when the price of this service provider was relatively high, and after choosing, she discovered other service providers with higher cost-effectiveness. The second time this seller friend notified the service provider 30 days before the expiration of the declaration that they needed to cancel the vat, but the service provider received the money but did not take any action. After a few months, it was discovered that there was a large fine (totaling 4w+) that needed to be paid, which was really unfriendly to beginners.

Most of the registered vats are for entering the Middle East e-commerce platform Noon, and a vat value-added tax number is required. Currently, the vat tax rate is 5% in Saudi Arabia and 15% in the United Arab Emirates

UAE Vat requirements and precautions:
1. The sales threshold for applying for a tax number is for local enterprises (no need to apply for a tax number below 187500, voluntary application for a tax number between 187500 and 375000, and mandatory application for a tax number between 375000)
2. Cross border e-commerce must see!!! Cross border e-commerce requires applying for a tax number once sold. Those who do not have a registered tax number will be fined 20000 yuan and will also need to pay the corresponding taxes;
3. Regarding declaration: Generally, it is declared quarterly, once a quarter. When looking for a service provider, be sure to ask in advance whether the service fee includes declaration (usually including four declarations in the first year); The first time the declaration is delayed, there will be a fine of 1000AED, followed by 2000AED each time, and there will be taxes and corresponding late fees to be paid. Within a week, it is 2%, from one week to one month, it is 4% tax, and every day after one month, it increases by 1%. The United Arab Emirates can only submit cancellation after one year of declaration (cancellation requires various certificates)
4. Regarding cancellation: It is necessary to cancel the online store first, and then submit the application through a successful cancellation certificate. Failure to submit the application after more than 20 days of cancellation will result in a fine of 10000 AED. If it is not deregistered, the VAT needs to be declared continuously and once a quarter. If there is any delay or omission in declaration, there may be a certain fine. The specific amount will be determined by the tax bureau according to the situation, Fines are cumulative (Generally, if an online store is deregistered, it is necessary to apply for a VAT deregistration. However, if it is uncertain whether it will continue in the future, please do not deregister. It can be very troublesome to apply for a new VAT account after deregistration. If the seller finds it difficult to do business this year, or if they are temporarily suspending the selection of new products, and plans to temporarily exit the cross-border market, but there is a possibility of restarting in the future, they can temporarily save their VAT tax number and choose to do regular zero declaration to keep their VAT account, so there is no need to enter.) Cancel the transaction and wait for the resumption of cross-border trade business in the future before proceeding with normal declaration
5. Whether the accumulation of fines to a certain extent will affect individuals' future visits to this country and personal credit reporting needs further investigation
6. The punishment for late registration, late declaration, and late tax payment of VAT is also relatively strong (this should be noted)
7. Submit the cancellation application 30 days in advance, and it needs to be submitted in the final declaration report (0 declaration)
The basic requirements for Saudi VAT are similar to the above

What should we pay attention to as cross-border sellers?
1. Cross border sellers need to register for a VAT (in short, to do business in this country, they must first obtain a doorstep and have a value-added tax number)
2. At present, there is no clear penalty policy for late cancellation, but it is recommended that everyone submit a cancellation application within 30 days in advance (before the last declaration);
3. Need to submit the final declaration report within the deadline (0 declaration)

Of course, when it comes to this, it's all about the impact and requirements we have to share with everyone. In business, there must be certain difficulties and barriers, but it is also important to have enough confidence and not shrink back just because you see these risks and challenges