Last week, a seller buddy of mine had his power bank shipment held at Riyadh airport. Customs flagged it for missing VAT registration and using an old paper certificate of origin. Three days in detention, storage fees ate his margin.
Here's the deal: effective June 1, 2026, Saudi Arabia dropped the low-value VAT threshold from 1,000 SAR to 500 SAR. That means even a $30 item now triggers tax. Plus, electronic Certificates of Origin (e-COO) became mandatory. No e-COO? Your cargo stays at customs.
My take: many sellers still think they can undervalue goods or use personal channels. But ZATCA and customs now share real-time data. A client declared $100 Bluetooth earphones as $50 last week to dodge VAT. The system flagged the discrepancy, and he got slapped with double the tax + a fine. That's a $40 loss on a $100 item.
Three actions you need to take.
First, register for VAT with ZATCA immediately. It takes 1-2 weeks, so don't wait until your shipment lands. Second, apply for e-COO through certified chambers or platforms – cost is around 30–50 RMB per shipment. China Council for the Promotion of International Trade now supports online applications. Third, reprice your goods. With the 500 SAR threshold, most items will need VAT built into the price. I usually add a 10-15% tax buffer right into the listing.
One more thing: if you sell electronics like power banks or small appliances, don't forget Saudi SABER energy labels. You need PCOC and SCOC before shipping, or customs will hold your cargo regardless of VAT and e-COO.
Honestly, how many sellers are still following a 2019 playbook? Time to update.