BLOG – A1TALLYTAXACCOUNTING

🧾 What’s new?

1. Big update in April 2025

Saudi Arabia’s Tax & Customs Authority (ZATCA) revised the VAT rules on 18 April 2025 vatupdate.com+4vatcalc.com+4kpmg.com+4 fintedu.com+2vatupdate.com+2vatcalc.com+2. Most updates took effect immediately, but two major changes have future rollouts:

2. VAT Grouping gets stricter (starts 15 Oct 2025)

VAT grouping lets related companies act as one VAT entity to simplify internal transactions (no VAT between them).

New rules:

Every company in the group must individually qualify for VAT (meet the registration threshold, be resident in Saudi, etc.).
Companies in special economic zones, or those receiving specific VAT refunds, cannot join these groups.
Existing VAT groups have until 15 October 2025 to comply dlapiper.com+2pwc.com+2fintedu.com+2 kpmg.com+1vatupdate.com+1.

3. Deemed‑Supplier Rules for Online Marketplaces (starts 1 Jan 2026)

Online marketplaces (like e‑commerce platforms) must now act as the VAT collector for sales made by third-party sellers who aren’t VAT‑registered in Saudi Arabia. This rule helps ZATCA track and collect VAT more efficiently .

4. Better clarity on refunds, transfers & invoices

The April changes also include details on:

Foreign VAT refunds (for tourists and exports)
VAT treatment for transfers of going‑concern (selling a business as‑is)
E‑commerce seller responsibilities
Import/export documentation
Credit and debit note rules
These ensure smoother VAT processing and help businesses avoid mistakes vatupdate.com+6vatcalc.com+6vatupdate.com+6.

✅ Why this matters for businesses:

Simpler internal VAT: VAT between branches/group companies still works, but you must qualify separately.
E‑commerce sellers: Platforms now have VAT obligations.
Prepare ahead: Businesses have months to adjust before each new rule kicks in.
Documentation matters: Stronger compliance means better record‑keeping and fewer audit issues.

📅 Quick timeline

Date	What happens
18 April 2025	Main VAT updates published and begin
15 Oct 2025	New VAT grouping rules begin
1 Jan 2026	Deemed‑supplier rules come into force