What is the tax number?

It is important for companies and enterprises engaged in commercial activity in Saudi Arabia, whether the activity is subject to value-added tax (VAT) or excise tax, to know what the tax number is, and for individuals engaged in commercial activity to know as well.

These businesses and individuals alike must obtain a tax number to use in all their tax affairs, including using it in the tax invoices they issue, the tax certificate, and to file tax returns, as it serves as a unique identifier for them.

 In this article, we offer you the definition of the tax number, which is one of the conditions for the validity of the tax invoice according to the requirements of the Zakat, Tax, and Customs Authority, and we provide you with an example of it. We also explain to you the ways to obtain this tax number for you as an individual or for your enterprise, whether by registering you for value-added tax or excise tax. In addition, we show you the features of the Qoyod cloud accounting program and the electronic tax invoice services it provides to you, so follow us.

 What is a tax number?

 The tax number is simply a fifteen-digit number, and it serves as a unique digital identifier obtained by the individual or enterprise after registering for VAT, or excise tax. This number acts as an identifier for the establishment in all its tax transactions, as it is one of the requirements that must be met in tax invoices as determined by the Zakat, Tax and Customs Authority, and it must be used in the tax certificate as well. Therefore, businesses seek to know what the tax number is and how to obtain it in order to use it in all their invoices and tax transactions.

Tax number example

After you know what a tax number is and how to get it, you may wonder what the tax number looks like. As we mentioned to you earlier, the tax number consists of 15 digits. Its shape can be as follows: [123456789900003]. The Zakat, Tax, and Customs Authority issues this number to the establishment or individual after registering for VAT, or excise tax, and it is worth noting that the tax number is a unique number, meaning that it cannot be repeated for two different establishments or individuals.

How to get a tax number

The tax number can be obtained for a natural person (persons who carry out an activity in person) or a legal person (establishments and legal entities) who carries out an economic activity subject to VAT. Its annual VAT revenue is more than SAR 375,000, and an enterprise that imports, produces, or sells excise goods can also obtain a tax number. Now that you know what the tax number is and who can get it, here are the ways to get it as follows:

VAT registration for establishments

Businesses that conduct a commercial activity subject to VAT can obtain a tax number by registering for VAT with the authority by following the following steps:

1. Log in to the Zakat, Tax, and Customs Authority website, Zatca.gov.sa, or use the Zakat, Tax, and Customs Authority mobile application.
2. Click on the “E-Services” menu.
3. Choose Zakat, Tax, and Customs Services.
4. Select Tax Services.
5. Select VAT.
6. Select the VAT Registration Service (Monshaat).
7. Fill out the registration form.
8. You will receive a notification of the tax certificate when the application is completed, and the certificate contains the tax number of your establishment.

VAT registration for individuals

Individuals who practice an economic activity in the Kingdom can obtain a tax number as well, where a VAT account number is generated when registering for VAT with the Authority by following these steps:

1. Log in to the Zakat, Tax, and Customs Authority website, Zatca.gov.sa, or use the Zakat, Tax, and Customs Authority mobile application.
2. Click on the “E-Services” menu.
3. Choose Zakat, Tax, and Customs Services.
4. Select Tax Services.
5. Select VAT.
6. Choose the VAT registration service.
7. Fill out the registration form.
8. You will receive a VAT notification and certificate when the application is completed.

It is worth mentioning that registration for this service is optional for individuals whose annual revenues exceed SAR 187,500 and less than SAR 375,000.

Registration for the VAT Group

Any two or more legal persons residing in the Kingdom can register as a tax group if the statutory conditions for this are met, and upon approval of their application, the group is treated as one person for VAT purposes, without prejudice to the joint liability of each of the group members. This can be done by following the following steps:

1. Log in to the website of the Zakat, Tax, and Customs Authority at Zatca.gov.sa.
2. Click on the “E-Services” menu.
3. Choose Zakat, Tax, and Customs Services.
4. Select Tax Services.
5. Select VAT.
6. Select the VAT group registration service.
7. Fill out the form and upload the documents.
8. You will receive a notification when the order is completed.

Excise tax registration

A tax number can be obtained when registering in the Excise Goods Tax, and this service is for establishments that produce, import, or possess goods that are harmful to public health or the environment, such as soft drinks, sweetened drinks, energy drinks, tobacco products, electronic smoking devices, and liquids used in them. These establishments must know what the tax number is, and you can register in this service to obtain the tax number by following the following steps:

1. Log in to the website of the Zakat, Tax, and Customs Authority at Zatca.gov.sa.
2. Click on the “E-Services” menu.
3. Choose Zakat, Tax, and Customs Services.
4. Select Tax Services.
5. Select excise tax.
6. Choose the excise tax registration service.
7. Submit the application and fill out the forms.
8. You will receive a notification when the order is completed.

The difference between a tax number and a TIN number

Some may be confused about the concept of the tax number and the TIN number, and after knowing what the tax number is comprehensively, you can learn the difference between it and the TIN number in terms of the number of digits, its use, and whether its appearance in the invoices of the establishment is a condition or not through the following table:

Qoyod: Your Perfect Choice for Issuing Tax Invoices

Your use of an electronic invoicing solution has become a necessity for your establishment, as the Zakat, Tax, and Customs Authority started applying electronic invoicing starting on December 4, 2021. It obliges all taxpayers subject to VAT to issue, exchange, and process invoices in a structured electronic format with coordination between sellers and buyers, and since the Qoyod system is approved by the Authority, it meets all your needs in terms of tax invoices, issuance, and maintenance safely.

Qoyod understands that business owners and companies may not have comprehensive knowledge about what a tax number is and its great importance and the importance of its presence in their tax invoices; they may not have a previous accounting background, so the Qoyod system has been designed to be easy to use for these people and to automate many of the company’s internal tasks in order to reduce the errors that occur, such as forgetting to add the tax number to tax invoices, which is a violation that entails fines and legal penalties.

Conclusion

After comprehensively answering the question of what a tax number is, you now know the importance of its presence in your tax invoices so that they are fully sound and legal. In order to ensure that they are issued properly so that they meet all the requirements of the Zakat, Tax, and Customs Authority, you should use a reliable electronic billing solution approved by the Authority. It helps you facilitate the issuance of tax invoices that include your or your establishment’s tax number and the tax number of your establishment or individual, and makes it a fast, secure, and reliable process.

The Qoyod accounting program stands out here, as it provides you with the service of issuing accurate and sound tax invoices in an easy and fast manner. Qoyod knows what a tax number is and realizes its great importance, and it has been approved as a solution provider for electronic invoicing by the Zakat, Tax, and Customs Authority. You can use it with full confidence in the accuracy and integrity of your tax invoices. Activate the Qoyod accounting system easily and without downloading, and get a free trial period of 14 days during which you can benefit from all Qoyod services.