Deemed Suppliers & E-Commerce Platforms: Saudi VAT’s New Frontier

The April 2025 amendments to Saudi VAT place new responsibilities on digital marketplaces. Many platforms will now act as deemed suppliers, making them directly liable for VAT in certain transactions.

What “Deemed Supplier” Means

• Platforms facilitating sales by third parties may be treated as the supplier.
• They must collect VAT, issue invoices, and remit to ZATCA under Article 47.
• The rule applies especially to cross-border transactions involving Saudi customers.

Operational Challenges

• Marketplaces must reconfigure how they bill sellers and end users.
• IT systems and back-end algorithms must differentiate standard vs. deemed sales.
• Litigation or disputes may arise if sellers and platforms misclassify transactions.

Conclusion

Marketplaces are in the spotlight: Saudi’s new VAT rules may make online platforms VAT-liable. platforms must rework systems, billing flows, and contracts — fast.

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