- ZATCA published a VAT Guide with clarifications on VAT Executive Regulations amendments
- New conditions for tax group registration require VAT eligibility, a fixed business location in Saudi Arabia, and voluntary registration criteria
- At least 50 percent control by the same legal person is needed for capital, voting rights, or market value
- Members cannot be in special customs zones or part of another tax group and must not be eligible for VAT refunds, with exceptions for certain property developers and public benefit project donors
- Conditions must be met throughout the registration period; non-compliant groups have six months to adjust
- Transfer of business is not taxable if it includes all necessary assets, the recipient is VAT-registered, and both parties agree; ZATCA must be notified within a month
- Electronic marketplaces are defined for VAT purposes; platforms only processing payments or redirecting customers are not subject to VAT
- Marketplaces intermediating services from non-resident suppliers are responsible for VAT collection and remittance
- From January 2026, marketplaces facilitating transactions for unregistered resident suppliers will be liable for VAT
- Other updates include changes on cessation of economic activity, service supply scope, and VAT deductions on goods under financing contracts
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
