Refund after VAT group changes
We joined a VAT group and now our refund is stuck. Why?
The situation
Persons eligible for refunds under Article 70 generally cannot be VAT group members after the 2025 amendments.
The law
- VAT Implementing Regulations Articles 10 to 12 (VAT groups, as amended 2025): Group members need 50 percent common ownership or control; each member must be eligible to register
- VAT Implementing Regulations as amended 2025, refund rules: Refund eligibility, documents and correction of refund applications were updated; designated persons minimum refund SAR 5,000
What it means for you
Check whether membership is still valid. Existing groups had a 180-day grace period from April 2025 to regularize. You may need to leave the group to keep refund rights.
What to do
- Review membership rules.
- Talk to ZATCA.
- Restructure if needed.
We can do this for youVAT refund claim for excess input VAT: exporters, start-ups and capital spend: SAR 3,500