2025 VAT Regulation Amendments: Key Changes to Articles 50 & 70 on Deductions and Refunds

• Amendments to VAT Implementing Regulations published on 18 April 2025
• Key updates to Article 50 and Article 70
• Article 50 focuses on deductible expenses
• Non-deductible items include hospitality and insurance for employees and families
• Restricted vehicles defined as those carrying no more than 10 persons
• Exceptions for trucks, cranes, heavy machinery, and emergency vehicles
• Article 70 addresses foreign VAT refunds
• Monthly claims allowed in special cases
• No corrections after claim submission
• Minimum claim threshold increased to SAR 5,000
• Payment date of tax invoice required
• Refund processing timeline reduced to 30 days
• Simplified invoices accepted for certain expenses
• Incorrect refunds must be repaid
• Expanded grounds for VAT registration cancellation

Source: fintua.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.

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