Saudi Arabia: Zakat, Tax and Customs Authority adopted Decision No. 01-06-24 amending the Value-Added Tax Implementing Regulation

On 17 April 2025, the Zakat, Tax and Customs Authority (ZATCA) adopted Decision No. 01-06-24 amending the Implementing Regulation of the Value-Added Tax (VAT) Law. The amendments introduce updated criteria for VAT group formation, requiring each member to meet eligibility requirements independently and excluding certain entities, including those established in special economic zones. The amendments also authorise ZATCA to designate electronic marketplaces as deemed suppliers under defined conditions, requiring them to account for VAT on supplies made by unregistered sellers. Such designation is subject to authorisation by ZATCA. The VAT refund process for non-resident businesses has been amended to include increased minimum claim thresholds and expanded documentation requirements. The amendments were issued pursuant to the VAT Law and its Implementing Regulation. The decision enters into force upon publication in the Official Gazette, with a 180-day transition period for VAT group representatives to align with the amended Article 10. Provisions in Paragraph 3 of Article 47 apply from 1 January 2026.