VAT registration
In one sentenceRegistering the business with the Zakat, Tax and Customs Authority (ZATCA) for VAT, mandatory above 375,000 SAR and voluntary above 187,500 SAR.
Simply put
The measure is the value of annual taxable supplies, meaning taxable sales over twelve months, not net profit.
After registering, the business receives a VAT number and starts issuing tax invoices, collecting VAT, and filing returns on time.
Example
A small contracting establishment's taxable sales over the last 12 months reached 400,000 SAR, exceeding the mandatory registration threshold of 375,000 SAR, so it must register and issue tax invoices.
Don't confuse it with
VAT numberRegistration is the procedure itself; the VAT number is what the business receives after it.