The Kingdom’s refreshed VAT regs are now in effect, introducing amendments to tax group registration, deregistration processes, the scope of taxable supply, tax obligations, and refund mechanisms, according to a publication (pdf) in the official gazette.

Tax group representatives registered with the Zakat, Tax, and Customs Authority (Zatca) before the release of the amendments have up to 180 days to ensure their tax group complies with the updates. The tax rules for electronic marketplaces supplying digital services won’t come into effect until 1 January 2026.

New registration criteria: Two or more companies can register as a VAT group if they are based in the Kingdom and eligible to register for VAT. Companies operating in special zones with customs exemptions or those already in another tax group are not eligible.

Deregistration requirements: If a company ceases its economic activity — due to losing its legal status or transferring its operations — it must cancel its tax registration. In the case of business transfer, the new owner must notify the tax authority within 30 days, unless the previous owner cancels the registration.

ALSO- Charitable entities and non-profits are now included in designated persons allowed to apply for tax refunds, with Zatca required to explain rejections. The minimum refundable amount has also been raised to SAR 5k, from SAR 1k previously.

AND- Tourists can get refunds on personal belongings when leaving the Kingdom, Authorized providers can also submit refund requests on behalf of tourists. However, GCC residents, transport crew, and others specified by Zatca are excluded. The amendments also excluded from the scheme a number of goods, including vehicles, tobacco, food, beverages, and oil.

Want to learn more? Check out this detailed explainer from Deloitte.

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