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

On 18 April 2025, Decision No. 01-06-24 amending the Implementing Regulation of the Value-Added Tax Law enters into force following its publication in the Official Gazette. 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 Zakat, Tax and Customs Authority (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. Provisions in Article 10 must be implemented by 15 October 2025, and Paragraph 3 of Article 47 will apply from 1 January 2026.