ZATCA Announces Major VAT Regulation Amendments! 

A Historic Move by ZATCA: VAT Regulations Completely Overhauled 

On April 18, 2025, Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) published Board Resolution No. 01-06-24 in the Official Gazette, unveiling sweeping changes to the VAT Implementing Regulations. This marks the most extensive revision since the regulations were first introduced in 2018. 

Highlights of the New Amendments 

1. Stricter VAT Grouping Criteria 

The conditions for forming VAT groups have been tightened and clarified. Companies must now carefully evaluate their eligibility for VAT group registrations. 

2. Rules on Cessation of Economic Activity and Nominal Supplies 

New definitions and requirements have been introduced concerning the cessation of economic activities, nominal supplies, and the "Transfer of Going Concern" (TOGC). 

3. Clarifications for Special Zones and Services 

Clearer rules now apply to transactions in special economic zones, services provided to non-GCC residents, government grants, financing contracts, and online platform operations.

4. Alignment of Invoice Issuance Timelines 

The issuance timelines for credit and debit notes must now match those for tax invoices: they must be issued no later than fifteen days following the month in which the triggering event occurs. 

Is the E-Invoicing Process Affected? 

While these regulatory changes do not directly modify the technical e-invoicing infrastructure, it is essential for businesses and tax advisors to re-evaluate their business models and compliance processes. Special attention must be given to invoicing timelines and content validation to avoid compliance risks.