Saudi Arabia to Offer VAT Refunds to Tourists in 2024
Saudi Arabia will introduce a VAT refund system for tourists in 2024, aiming to attract 127 million visitors by 2025 and boost non-oil revenue through tourism growth.
Photo Source: Ease My Vacations
Saudi Arabia is set to introduce a value-added tax (VAT) refund system for tourists in 2024, aiming to boost tourism and enhance the shopping experience. The initiative, led by the Saudi Zakat, Tax, and Customs Authority, seeks to simplify the process of reclaiming VAT for foreign visitors, making the Kingdom a more attractive destination.
Part of Saudi Arabia’s broader vision for economic growth, the system aligns with the Kingdom’s goal of attracting 127 million visitors by 2025 and achieving tourism revenue of SR346.6 billion. These efforts aim to strengthen non-oil income while creating increased opportunities for private sector growth.
Tourist-centric reforms have been a key focus in recent years. Since 2019, Saudi Arabia has introduced tourist visas for various nationalities, including online and on-arrival options. Additionally, the Kingdom launched a four-day transit visa allowing visitors to perform Umrah, visit major religious sites, and attend cultural events.
In 2023, Saudi Arabia recorded over 100 million tourists, including 27 million international arrivals. These achievements underline the Kingdom’s dedication to transforming into a global tourism hub.
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