Last Wednesday, a friend who sells electronics told me his shipment was stuck at Riyadh airport. ZATCA demanded a local VAT registration number, or else they would return the goods. Twenty thousand USD worth of inventory—and his freight forwarder had no clue.
This is not an isolated case. As far as I know, starting June 1st, Saudi Customs started syncing clearance data with ZATCA in real time. Sellers who used to rely on low-value exemptions to avoid VAT are now being blocked by the system. Another friend dealing in accessories had a $50 shipment halted for tax collection.
To put it bluntly, Saudi Arabia is closing the loopholes. Last year they dropped the low-value exemption threshold from $266 to $100, and this year they've gone for full digital audits. In my experience, don't kid yourself that "small parcels fly under the radar."
Three actionable tips:
First, register for Saudi VAT. If your annual sales exceed SAR 375,000 (roughly $100,000), registration is mandatory. The process takes about 30–45 days, so don't wait until your goods arrive.
Second, switch to e-invoicing. ZATCA requires all B2B transactions to be uploaded as electronic invoices. If you're still using handwritten receipts or PDFs, you're asking for an audit.
Third, even low-value goods must be declared properly. Even if your shipment is below the $100 exemption threshold, submit the real invoice and correct HS code at customs. For example, if you underdeclare the value, the customs system can compare it against the selling price on the marketplace. A discrepancy above 50% triggers a hold.
The truth is, these rules weren't sprung overnight. Saudi Arabia published the notice back in late 2025, but many sellers shrugged it off. The ones getting stuck now are mostly those who were too busy to register.
So let me ask you straight: have you registered yet? If not, start your VAT application now. Otherwise, when peak season hits and your goods get stuck at customs, there won't be anyone to cry to.