Set up Saudi taxes in your Shopify store

Please note that you're obliged to charge taxes only if your business is VAT registered.

You can set taxes for your store in Saudi Arabia in Settings → Taxes of your Shopify admin.

If you do not see the UAE and Saudi Arabia in the Tax rates list of countries, you will need to add it as a shipping zone first:

1. If you do not see United Arab Emirates or Saudi Arabia in the Tax rates list, go to Settings → Shipping→ Shipping profiles and click Create new profile.
2. Click Create Shipping zone and select United Arab Emirates and Saudi Arabia.

Once you have both countries included in your Tax rates list, you can set up their taxes:

1. Go to the Settings → Taxes page in your Shopify admin and click on Saudi Arabia and United Arab Emirates.
   
2. Enter the 5% tax rate into the Country Tax field. 
   
3. Leave the regions with 0%tax and with the setting added to 5% federal tax.
   

If you are selling zero-rated or tax-exempt goods (goods for which no tax is charged), you will need to set up tax overrides.

To set up tax overrides in Shopify:

1. Go to Settings → Taxes in your Shopify admin and click Saudi Arabia and United Arab Emirates.
2. Scroll down to Tax overrides.
3. Add a collection of products from your store that are subject to zero-rate and tax-exempt rules and set their Tax Rate to 0%.

Sufio invoices are compliant with account legislation in Saudi Arabia. They also serve as a valid documentation for both VAT taxed and VAT-free orders shipped both within and outside Saudi Arabia.

Issuing invoices with a correct tax breakdown is vitally important for your bookkeeping and tax purposes.

If you are selling to businesses (B2B), Sufio invoices display all the required information including your TIN number and the TIN numbers of your customers.