Frequently Asked Questions
VAT is a form of indirect tax on the consumption or use of goods and services, applied at the point of sale, and charged on applicable transactions.
In February 2017, the Kingdom of Saudi Arabia (KSA) ratified the GCC VAT framework and committed to introducing VAT on January 1, 2018. KSA implemented an increase in its standard VAT rate from 5 % to 15 %. The new 15 % VAT came into effect as of July 1, 2020.
Zakat, Tax and Customs Authority (ZATCA) is responsible for the assessment, collection and enforcement of Zakat and taxes including VAT.
A registered business collects the VAT charged to customers on the supply of goods and services and pays VAT on goods and services purchased from suppliers. The difference between the VAT collected from customers and the VAT paid to suppliers is then remitted to Zakat, Tax and Customs Authority (ZATCA). ZATCA is a government agency in Saudi Arabia responsible for the assessment and collection of Zakat and taxes including VAT.
VAT is imposed at a rate of 15% for most goods and services in KSA. Certain supplies of goods and services are subject to a 0% VAT charge, while some are exempt (Refer to the page 18 from VAT guidelines.) . To comply with the Saudi Arabian Excise Tax Law, manufacturers, importers, and distributors of excisable goods are required to register with the ZATCA.
VAT is a general consumption tax and applies to most transactions of goods and services, unless specifically exempt by law. FedEx will apply and collect VAT, where applicable on its services. Rates and charges on all existing FedEx contracts are VAT exclusive.
A business must register for VAT if their taxable supplies and imports exceed the prescribed “mandatory registration threshold.” Additional information for businesses can be found at ZATCA website.
To register for VAT, please check VAT General Guidelines.
Zakat, Tax and Customs Authority (ZATCA) has issued a 'Taxpayer Guide' which outlines expectations from registered taxpayers to ensure building a relationship of mutual trust and respect. Further details can be found at ZATCA website at the ZATCA knowledge center.
For us to continue serving you the following tax registration details are required:
- FedEx Account Number(s)
- Name of your company
- Registered office address
- Tax Registration Number
- Copy of Tax Registration certificate (if available)
To ensure VAT benefits, your Tax Registration Number needs to be listed on the Tax Invoice provided by FedEx Express.
FedEx requires a copy of the tax registration certificate to verify the information provided and avoid any administrative errors in invoicing.
To ensure your tax registration details are entered correctly into our systems, it is important to update your tax registration information in the FedEx template. Once updated, it should be emailed to AR.FDXKSA@fedex.com along with a copy of your Tax registration certificate (if available).
If you have submitted incorrect information, you can re-submit the correct details along with the supporting documents to AR.FDXKSA@fedex.com.
Yes. You can submit your Tax Registration Number with the supporting documents to AR.FDXKSA@fedex.com when you receive them.
Legal entity name: FedEx Express Saudi Arabia Transportation Company LLC
Registered address: Riyadh, Aban Center, Al Ghadeer District, King Abdul Aziz Road, P.O Box 69103
Tax Registration number: 310427409100003
For a copy of the FedEx Tax Registration certificate, please contact your FedEx sales representative, or write to AR.FDXKSA@fedex.com