The Value Added Tax (VAT) is a type of indirect tax and is one of a major source of revenue to the government from all the small, medium businesses and enterprises in Saudi Arabia. For an easy and quick evaluation of tax and prevention of tax evasion, the department has introduced the Registration System.

This VAT registration system helps in identifying the assessment that come under the purview of the VAT and are liable to collect and pay VAT. In order to encourage registration process, some benefits and concessions are provided to the dealer.

To Enable VAT in Tally.ERP9:

• Go to
• Gateway of Tally -> Select F11: Features -> then select F3: Statutory & Taxation
• In the Statutory & Taxation Features,
• Set “Enable” VAT to “Yes”
• Enable Set/Alter VAT Details
• Press Enter to view the Companies VAT detailed screen
• In the Company VAT Details screen, specify the VAT Details and return for specific Additional Information.

Under VAT Details section:

• Select the Region.
• Select the applicable dealer type based on registration of the dealer and VAT department. In this section, the procedures related to regular dealers are being explained. Therefore, choose the dealer type as regular.

For more information on how to enable VAT in Tally ERP 9 software, please get in touch with our technical team of experts on 00966-583117703.