Save Money Traveling: How to Get a VAT Refund in Saudi Arabia

1 week ago Editor

Saudi Arabia has launched a new VAT refund scheme for tourists, allowing them to reclaim 15% tax on purchases. The policy took effect on April 18, enhancing the Kingdom’s tourism appeal.

Starting April 18, tourists visiting Saudi Arabia can now claim a refund on the 15% Value Added Tax (VAT) applied to their purchases. The new policy, implemented by the Zakat, Tax, and Customs Authority (ZATCA), aims to enhance the country’s appeal as a global tourism destination.

Under the updated regulations, eligible tourist purchases from approved vendors will be taxed at 0% VAT, with refunds processed upon departure. ZATCA has authorized select service providers to manage the refund process, ensuring a smooth experience for visitors.

Tourists from Gulf Cooperation Council (GCC) countries will be treated the same as non-GCC tourists for VAT refunds until the Electronic Service Law takes effect. ZATCA will soon release detailed guidelines covering eligibility, qualifying goods, minimum purchase requirements, and refund procedures.

In a related update, ZATCA clarified rules for businesses transferring economic activities. Companies must notify the authority within 30 days of such transfers unless already deregistered for VAT. Additionally, businesses must retain all financial records even after deregistration, as they remain liable for any pending tax obligations.

This move aligns with Saudi Arabia’s broader strategy to boost tourism and diversify its economy under Vision 2030.