In May, a client of mine who sells e-cigarettes got a AED 500k fine from Saudi tax authority. Reason? Under-declared orders in the past two years.
Honestly, this is not an exception. UAE and Saudi customs systems now talk directly to tax authorities, cross-checking declared values on every shipment. My experience? The old trick of "under-declare by 5%" is a surefire way to get caught.
Here's a concrete example: in the first week of May, a batch of lamps we handled got stuck at Riyadh airport for 7 days. Customs asked for purchase invoices and platform sales records for every box. Clearance used to take 2 days; now it's 5-7 days on average. Longer checks at every step.
But there are ways to stay safe. I suggest three things: first, always declare actual transaction values – don't chase small tariff savings. Second, file VAT returns every quarter on time, even if it's zero. Third, keep complete purchase contracts and logistics documents for at least 5 years.
From what I know, UAE tax authority has sent抽查 notices to over 35% of cross-border sellers. Freight rates also jumped 15-20% due to higher inspection rates. Has your product category received a notice yet?
Related Reading
- [Saudi ZATCA VAT Audit Survival for Sellers](/en/news/saudi-zatca-vat-audit-crossborder-2026)
- [Logistics Cost Under VAT Audit Storm](/en/news/uae-saudi-vat-audit-cost-2026)
Sources
- [沙特 ZATCA 增值税官方指南](https://zatca.gov.sa/en/RulesRegulations/VAT/Pages/default.aspx)
- [沙特 SABER 能效标签平台](https://saber.sa/)
Policy information above is for reference only. Please verify against the latest official announcements from respective customs/tax authorities.