Saudi Arabia Introduces Marketplace VAT Rules: What Sellers Need to Know

Introduction of “Deemed Supplier” Provision: In April 2025, Saudi Arabia amended its VAT Implementing Regulations to include a “deemed supplier” provision for online platforms and digital marketplaces, shifting the VAT compliance burden to these platforms for B2C transactions involving non-VAT registered sellers.
Conditions for VAT Responsibility: Under the revised Article 47, platforms are deemed the supplier and must collect and remit VAT if they facilitate transactions where the seller is not clearly identified or is a non-resident seller whose goods are supplied in Saudi Arabia.
Impact on Marketplaces and Sellers: Marketplaces must adapt their transaction structures and systems to identify VAT obligations, while sellers must ensure compliance with VAT registration and invoicing policies to avoid cash flow issues and maintain regulatory adherence.