Inquiry about the tax number by the registry number

In light of the economic developments witnessed by the kingdom of Saudi Arabia, it has become Tax number An essential tool for organizing financial transactions between individuals, enterprises and government agencies. There are many ways to query it، Whether you are a facility owner or a consumer, knowing how to Inquiry about the tax number By record number It is a necessary step to ensure transparency and compliance with regulations.

In this article, we will review everything you need to know about the Tax Number, its benefits, how to inquire about it using the commercial registration number, as well as your tax obligations and possible penalties to avoid them .

What is the tax number  

Investing in Saudi Arabia has become one of the obvious goals for many entrepreneurs، Establishing companies in Saudi Arabia has clear steps to ensure legal compliance with regulations and laws, one of the most important of which is obtaining a tax number.

Tax number (Tax Identification Number-TIN) is a unique 15-digit code issued by the General Authority for Zakat, tax and Customs (ZATCA) to identify taxable entities and individuals. This figure is divided into four parts:  

1. The first three digits: indicate the type of taxpayer (individual or company) and the sector of activity.  
2. The following eight digits: serial number of the facility or individual.  
3. The following two digits: branch or unit code.  
4. The last two digits: a verification number to ensure the correctness of the number .  

What is the difference between a premium number and a tax number

In Saudi Arabia, there is a difference between the characteristic number  The tax number.

The characteristic number: It is a 10-digit number and is considered the authority's Establishment reference. the distinctive number is usually used to identify the establishment with the authority.

Tax numberIt is a 15-digit number that the establishment receives after registering in Value Added Tax (VAT) Or Selective tax. The tax number must appear in all invoices issued by the establishments and in the tax certificate as well.

How to get the tax number of the enterprise

Registration of the tax number of the enterprise requires some simple procedures that must be strictly followed. 

•  Go to the Website of the General Authority of Zakat And register as a new user. 
•  Fill in the registration form with the information of the enterprise, including contact information and bank account details that will be used in tax transactions. 

You should pay attention that it may require registration to obtain Tax number Some required documents, such as a certificate of commercial registration, social contract and tax declaration. Therefore, the necessary requirements for registering the tax number with the Zakat, tax and customs authority should be checked before starting the procedures.

What is the use of a tax number for individuals

 Tax number It is a number that distinguishes a person at government agencies in terms of the type and nature of the tax that will be imposed on him. 

1. Facilitating tax procedures: such as filing tax returns or paying taxes due.  
2. Proof of tax identity: when dealing with government agencies or banks.  
3. Take advantage of incentives: such as tax breaks in some sectors .  

What is the benefit of the establishment tax number  

 Tax number It is the main identification tool for establishments at the General Authority of Zakat.It is used in many things such as:

1. Legality in transactions: Proves the registration of the enterprise in the tax system, which strengthens the confidence of customers.  
2. Issuing electronic invoices: A prerequisite for issuing tax invoices in accordance with the new billing systems.  
3. Avoiding penalties: Such as fines or suspension of business activity due to non-compliance .  

4 . Ensuring legal compliance : As the obligation to file a tax return represents a commitment by the entity to the laws in the Kingdom and a clear statement of the profits of the entity and the state's financial rights over it.  

How can I inquire about the tax number with the registry number 

The General Authority of Zakat, tax and Customs provides an easy electronic service To inquire about the tax number Using the commercial registration number, Through the following steps:  

1. Access to the official website of the authority: (zatca.gov.sa]).  
2. Go to” electronic services “ → ”tax services".  
3. Choose “check registration in VAT”.  
4. Select “Search type “ → ”Commercial Register".  
5. Enter the commercial registration number + Visual Verification Code.  
6. Clicking on” submit " to review the results, which include the name of the enterprise and the tax number .  

How to cancel a tax number

In some cases individuals or establishments need to cancel Tax number, And that's when

1.  The facility ceases to operate
2.   The nature of economic activity is changing and therefore the type of tax treatment with it will change .

 And here it can be canceled Tax number By following the following steps:

• Log in with your account on the Zakat, tax and Customs Authority website.
• Go to the stop registration page and select “Request deregistration".
• Enter the required data and submit the documents for the cancellation of the tax number, confirm the cancellation process.

Important noteIt should be noted that establishments must submit a cancellation request : Tax number In case of not using the tax number for a long time, Zakat, tax and Customs Authority reserves the right to cancel the tax number in case of non-compliance with the required tax procedures

What goods are exempt from VAT

The General Authority of Zakat has worked to identify some goods that are exempt from paying VAT, such as :

• All medical supplies provided that they are declared by the Saudi Food and Drug Authority. 

• In case of trading in order to invest on gold, silver or any metal they are exempt with VAT.Provided that the purity of the metal percentage is not less than 99%
• Financial services are like opening a bank account.
• International passenger and cargo transportation. 
• Some transactions in residential ( not commercial) real estate are exempt from taxes, such as donations / inheritance / mortgage / transfer of real estate to a government entity.

What are the penalties for non-compliance with the payment of tax  

 There are a lot of amendments made to the Saudi labor law, which in turn are in the interest of the investor, but it should be noted that tax evasion or attempts at manipulation or fraud are imposed by the General Authority of Zakat severe penalties on violators in several cases, including:  

• Tax evasion: Tax evasion is punishable by a fine not less than the value of the tax due, and not more than three times the value of the goods or services subject to evasion.
•  Falsification of data: Anyone who submitted an incorrect tax return to the authority, or amended a tax return after submitting it, or submitted any document to the authority related to the tax owed to him and resulted in an error in calculating the amount of tax less than the due; shall be punished with a fine equal to (50%) of the value of the difference between the calculated and due tax.
•  Delay of tax payment: Anyone who does not pay the tax due within the period specified by the regulation shall be punished with a fine equal to (5%) of the value of the unpaid tax.
• Shall be punished by a fine not exceeding (50.000) fifty thousand riyals, each of:

1 – He is not obliged to keep tax invoices, books, registers and accounting documents during the period stipulated by the regulation, and the fine is for each tax period.

2-preventing or hindering the authority's employees or any of its employees from performing their job duties.

What are the entrepreneur's tax obligations

In order to maintain the legality of your transactions and not fall under the penalty of the law, you, as an investor, must:

1. Registration in the tax system: If the revenue of the enterprise exceeds the required minimum.  
2. 2. Issuing tax invoices: Includes the tax number of the establishment and the buyer.  
3. Submission of periodic declarations: Monthly or quarterly depending on the volume of activity.  
4. Maintaining financial records: For at least 5 years .  

Types of taxes in the kingdom 

In Saudi Arabia, there are several types of taxes levied on individuals and companies, these include:

1. Value Added Tax (VAT)

The ratio: 15% on most goods and services.

The excluded: Some goods and services are exempt or subject to a 0% tax, such as healthcare, education and some residential real estate.

2. Real estate transaction tax

The ratio: 5% on the value of the property upon sale or transfer.

Exempt: Donations to first-degree relatives, inheritance, and some other cases.

3. Corporate taxes

Income tax: 20% on the profits of foreign companies operating in the kingdom.

Zakat tax: 2.5% of the net assets of Saudi and Gulf companies.

Withholding tax: It ranges from 5% to 20% on payments transferred to entities outside the kingdom.

Tax number It is not just a digital code, but a bridge for secure and encrypted transactions between establishments and official entities. By understanding the mechanism of inquiring about it and taking into account tax obligations, you can avoid legal risks and strengthen the credibility of your business. Always remember that financial transparency is not only a government obligation, but an investment in the future and reputation of your enterprise. 

Tarik Alamal Alalmia is your ideal partner for obtaining a commercial register.

Obtaining a commercial register is one of the main steps in establishing your company in Saudi Arabia, and to ensure legal compliance with regulations and laws, you can rely on International Tarik Alamal Alalmia experts to establish companies in extracting the commercial register, renewing and amending your commercial register, writing off the commercial register, as well as inquiring about the tax number by the registry number.

You can get in touch with experts and get a completely free consultation in which you will get the perfect answers to all your queries، And that's via e-mail info@taabusiness.com

Or by phone +966568849250