Last week a seller told me his COD parcels in Saudi got seized. Reason: his carrier didn't have ZATCA certification. This isn't an isolated case. In May 2026, Saudi customs and ZATCA launched a joint operation, pushing COD inspection rates to 70%. Put simply, the old trick of using any random freight forwarder for COD is dead.
From my experience, Saudi now scrutinizes VAT declarations on COD shipments hard. If the carrier isn't registered with ZATCA, or if declared values don't match platform data, the whole batch gets held. How long? At least 15 working days. Add handling fees — you lose 30–50 SAR per order. UAE is similar: the Federal Tax Authority started auditing COD carriers' proof-of-delivery records. If a carrier can't produce VAT invoices or if the POD has discrepancies, fines start at 2,000 AED.
For example, you sell a $50 electronics item on COD to Saudi. If the carrier fails compliance, your goods get seized. You lose the product value plus storage and return shipping — easily over $80. Honestly, some small sellers have already lost six figures this month.
So what to do? Three actionable tips. First, immediately check if your Saudi COD carrier has a valid ZATCA TIN. If not, switch — no hesitation. Second, for high-value items (above $100), switch to prepaid or a hybrid model: 30% upfront + COD balance. Even if goods get stuck, you recover most costs. Third, integrate with UAE's e-Invoice system now, so every COD order generates a digital invoice. Otherwise, brace for penalties.
Oh, and Iraq is signaling similar rules by August. Have you started planning yet?