A practical overview of the ZATCA refund mechanism, eligibility, and how non-resident companies can recover Saudi VAT.
In 2024, the International Accounting Standards Board (IASB), issued a new Standard IFRS 18 ‘Presentation and Disclosures in Financial Statements’.
Revenue recognition is a key principle in financial reporting, underpinning the integrity and comparability of financial statements across industries and global markets.
Accurate and consistent revenue recognition is a cornerstone of sound financial reporting for all businesses, ensuring comparability across industries and markets.
Supply chain management in Saudi Arabia is entering a period of heightened compliance and oversight. By 2026, businesses operating in the Kingdom will face more rigorous due diligence obligations designed to ensure transparency, risk mitigation and regulatory compliance across all tiers of their supply chains. These requirements reflect the broader focus on corporate governance, operational resilience, and ethical business practices.
As Saudi Arabia advances its economic diversification agenda under Vision 2030, cross border investment and regional headquarters activity continue to expand. Multinational groups are increasingly establishing operational, distribution, and holding structures within the Kingdom. In this evolving landscape, transfer pricing and value chain alignment have become central to tax compliance, governance, and risk management.
As Saudi Arabia progresses into 2026 its supply chain landscape is evolving rapidly under the twin influences of digital regulation and business transformation. Organisations operating within and across Saudi Arabia’s borders are facing a shift from traditional contracting mechanisms to digitalised frameworks that carry both opportunities and risks. In this environment supply chain contracts are no longer legal documents alone; they are dynamic instruments that must anticipate regulatory changes, embed digital compliance and manage operational exposure.
The digitalisation of supply chains is transforming the way businesses operate in the Eastern Province of Saudi Arabia. Khobar, as a key industrial and commercial hub, is witnessing rapid adoption of digital technologies including enterprise resource planning systems, cloud platforms, automation tools, and data analytics. While these innovations increase efficiency and responsiveness, they also introduce new risks and governance considerations that require focused audit and cyber advisory attention.
Outsourcing in Saudi Arabia is evolving rapidly as businesses seek to optimise operations, reduce costs and access specialised expertise. The Kingdom’s economic diversification, digital transformation and regulatory development are reshaping the legal, tax and operational landscape for outsourcing arrangements. Organisations must now consider not only efficiency but also compliance, governance, and risk management when designing outsourcing models. For boards, executives, and operational leaders, understanding the implications of outsourcing is essential to maintain competitiveness and ensure regulatory alignment.
Last-mile delivery is no longer an operational challenge to refine; it is a structural constraint on the future of e-commerce. As costs escalate, customer expectations intensify, and sustainability pressures mount, the traditional model has reached its limits.
The Zakat, Tax and Customs Authority (ZATCA) has moved decisively away from the old model of enforcement through punishment, and toward something more sophisticated: a system designed to reward honesty and encourage businesses to come forward before problems become crises. The principle is straightforward. Taxpayers who voluntarily disclose errors, submit missing documentation, or settle outstanding obligations promptly can qualify for partial or full waivers of the fines they would otherwise face. In practice, this means that a business which catches its own mistake and reports it stands in a very different position than one that waits to be caught. That distinction matters enormously, and it reflects a maturity in regulatory thinking that many jurisdictions have been slow to adopt.
As the Kingdom of Saudi Arabia accelerates its energy transition and expands its renewables sector, understanding how Value Added Tax (VAT) applies to green projects is essential for investors, developers, and policymakers. VAT remains a cornerstone of the Saudi indirect tax system, and its application to energy transition activities has implications for project costs, financial modelling, compliance and overall investment decisions.
Saudi Arabia continues to attract international talent as part of its economic transformation agenda under Vision 2030. Multinational groups, regional headquarters, and fast-growing local organisations increasingly rely on mobile workforces to support expansion, knowledge transfer, and operational resilience. At the same time, the regulatory framework governing workforce mobility has evolved significantly, with greater emphasis on compliance, transparency, and alignment with national objectives.
Saudi Arabia has formally introduced the Year of Artificial Intelligence 2026, a national initiative that signals the Kingdom’s commitment to advancing artificial intelligence across government, industry and society. The launch of the official identity and logo for the initiative reflects the broader strategic ambition to position Saudi Arabia as a global centre for digital innovation, advanced technologies and knowledge-based economic growth.
The introduction of Advance Pricing Agreements (APAs) in the Kingdom of Saudi Arabia represents a significant step in the evolution of the country’s transfer pricing regime. In recent years, the Zakat, Tax and Customs Authority (ZATCA) has updated the Transfer Pricing Bylaws to incorporate APA provisions and, in early 2025, released formal APA Guidelines. This development reflects Saudi Arabia’s commitment to aligning with global tax practices while offering taxpayers greater certainty regarding cross‑border related-party transactions. For organisations operating in or expanding into the Kingdom, understanding this regime and assessing market readiness for APAs is essential.
Environmental, social and governance (ESG) reporting has become an integral component of corporate strategy and investor communication worldwide. In Saudi Arabia, the increasing focus on sustainable development, corporate accountability, and investment transparency aligns with Vision 2030 objectives, driving organisations to adopt internationally recognised reporting frameworks. Among these, the IFRS Sustainability Disclosure Standards S1 and S2 are poised to become central to ESG reporting in the Kingdom, providing a globally consistent framework for sustainability-related disclosures.
