ZATCA Proposes Amendments to VAT Implementation Regulations in Saudi Arabia
ZATCA, Saudi Arabia’s Zakat, Tax, and Customs Authority, has proposed changes to the VAT law, which is now open for public feedback. These amendments impact various articles and sub-clauses and aim to provide advantages to taxpayers.
On August 28, 2024, ZATCA unveiled proposed updates to the VAT Implementation Regulations, which will be open for public consultation until September 17, 2024. The main goals of these changes are to:
- Align tax procedures with global best practices
- Improve the efficiency of the tax refund process
- Boost compliance, helping taxpayers fulfill their obligations
- Support the growth of Saudi Arabia’s tourism industry
A total of 26 articles and their associated provisions will be impacted. Key updates include:
- Issuance of Credit and Debit Notes: The new guidelines require credit and debit notes to be issued within 15 days after the month following the event, bringing them in line with the timeframe for tax invoices.
- Tax Group Registration Criteria: The amendments simplify the registration process by focusing on residency, economic activity, and ownership/control requirements.
- Nominal Supplies: Clarifications have been added to the rules on nominal supplies, stating that they are now considered supplies for consideration unless otherwise specified, unlike the previous version, which referred only to provisions in the VAT agreement.
For full details on the proposed changes, visit the Istitlaa platform.
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