The <a style="color: #800000;" href="https://zatca.gov.sa/ar/Pages/default.Zakat, Tax and Customs Authority representatives of tax groups registered before the issuance of the amendments have a period not exceeding 180 days from the date of publication of the decision to regularize their status in accordance with the amendments contained in Article 10 of the executive regulations, as part of the regulatory efforts aimed at developing the VAT system and achieving greater efficiency and legislative clarity.

Regulatory efforts that aim to develop the VAT system and achieve greater efficiency and legislative clarity.

The executive amendments include a package of new procedures and controls that directly affect tax groups, practices associated with the cancellation of economic activity, tax refunds for tourists, as well as changes in the tax treatment of certain goods and services.

Regulatory efforts aimed at developing the VAT system and achieving greater efficiency and legislative clarity.

Reconciliation of tax groups

According to the new decision, the Authority granted representatives of tax groups registered with it before the issuance of the amendments a period not exceeding 180 days from the date of publication of the decision to regularize their status in accordance with the amendments contained in Article 10 of the Executive Regulations.

The decision also provided for an exception related to the third paragraph of Article 47 of the Executive Regulations, as its new provisions will be applied as of January 1, 2026, allowing more time to prepare and adapt to future changes.

The decision also provided for an exception related to the third paragraph of Article 47 of the Executive Regulations.

Deregistration of activity

The amendments included controls related to the cessation of the taxable person from practicing the economic activity, or in the event of the disappearance of his legal status, or the assignment of the activity, where he is required to cancel his registration, and the cancellation is effective from the date determined by the Authority after fulfilling all tax requirements.

Amendments were also added to the amendments. Two paragraphs have been added to Article 13 of the Regulations, requiring the assignee to inform the Authority within 30 days from the date of the assignment, in addition to the continued obligation of the deregistered taxpayer to maintain documents and records, and not to prejudice the payment of any previous dues.

Tax refund mechanism for tourists

<The first paragraph of Article 73 was amended to allow the Authority, in accordance with a mechanism to be determined by it, to allow tax refunds for purchases of eligible goods that tourists carry with them when they leave the Kingdom. The second paragraph was also amended to authorize the authorization of specialized service providers to facilitate this refund.

In an additional step to standardize treatment, a new paragraph (No. 11) was inserted in the same article, stating that tourists coming from GCC countries will be treated as non-GCC tourists until the implementation of the e-service system stipulated in Article 79 of the regulation.

Customs treatments for some goods

The amendments repealed the seventh paragraph of Article 32, which granted a zero-tax exemption for certain goods under the suspension of customs duties subject to certain evidence.

In contrast, the amendments added a zero-tax exemption for certain goods under the suspension of customs duties, subject to certain evidence. On the other hand, a new Article 32 bis was added, stating that the supply of goods to suspended duty positions, as well as the supply within those positions, is subject to zero percent VAT, provided that the provisions of the Unified Customs Law are applied.

The amendments removed the seventh paragraph of Article 32, which granted a zero-rated VAT exemption for some goods under the suspension of customs duties, subject to the provision of evidence.