- ZATCA released a guide clarifying VAT rules for electronic market operators (ECOs) in Saudi Arabia, effective January 1, 2026.
- ECOs facilitating supplies by VAT-unregistered KSA-resident suppliers are deemed to purchase and resupply goods/services in their own name.
- The guide details when an ECO is considered to “facilitate” a supply, exceptions to deemed-supplier rules, and provides practical business model examples.
- ECOs must verify and document suppliers’ residency and VAT registration status, with VAT obligations shifting to suppliers once they register.
- The guide aligns with EU practices but excludes cross-border central reporting, and emphasizes substance over form in determining ECO responsibilities.
Source: mailchi.mp
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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