| Update: | Compliance Alert – ZATCA introduces comprehensive amendments to VAT Regulations |
| Date: | 2025-04-25 |
On April 18, 2025, the Zakat, Tax and Customs Authority (ZATCA) announced significant updates to the Value-Added Tax (VAT) Implementing Regulations through Board Resolution No. 01-06-24.
Key changes include stricter criteria for forming VAT groups, refined rules on cessation of economic activities, nominal supplies, and transfers of going concern (TOGC). The amendments also clarify VAT treatment for special zones, services to non-GCC residents, government grants, financing contracts, and online platforms. Additionally, the issuance timeframe for credit and debit notes now aligns with tax invoices, requiring them to be issued within fifteen days after the month following the event.
Pagero recommends its clients operating in Saudi Arabia to reassess these amendments together with their tax advisors to understand their impact on compliance requirements.
The updated regulations are available on the ZATCA official website here.