Saudi Arabia has introduced a Value-Added Tax (VAT) refund service for international visitors, allowing them to reclaim VAT on purchases made within the Kingdom, effective from April 18, 2025.
In a strategic effort to boost tourism, Saudi Arabia has launched a Value-Added Tax (VAT) refund service for international visitors.
The initiative, led by the Zakat, Tax and Customs Authority (ZATCA) enables eligible tourists to reclaim VAT on purchases made within the Kingdom.
This move came into effect on April 18, 2025 following the recent amendments to the VAT Implementing Regulations issued by ZATCA to establish a clear and structured framework for processing tourist tax refunds through authorised service providers, reported Keypoint, a comprehensive professional business service provider in the GCC.
WHERE TO CLAIM VAT REFUND
International visitors can conveniently reclaim VAT on eligible purchases made across Saudi Arabia through designated areas. Refund services are currently available at the following major international airports:
- King Khalid International Airport – Riyadh
- King Abdulaziz International Airport – Jeddah
- King Fahd International Airport – Dammam
ELIGIBILITY CRITERIA FOR VAT REFUND
To qualify for a VAT refund in Saudi Arabia, the following conditions must be met:
- The tourist must not be a Saudi citizen or a permanent resident of Saudi Arabia.
- The tourist must be 18 years or older at the time of purchase.
- Crew members of planes, ships or other means of transport leaving Saudi Arabia are not eligible.
- The tourist must not be on any list prohibiting VAT refunds.
ELIGIBLE & NON-ELIGIBLE PURCHASES
Eligible purchases must meet the following conditions:
- The total value of the purchase must be at least SAR 500, either in a single transaction or accumulated through up to three receipts from the same store on the same day.
- Purchased from VAT registered suppliers for tax-free shopping under the tourist VAT refund scheme.
- The purchased goods are for personal use only.
- Remain in original packaging and not consumed or used in Saudi Arabia before departure.
- Carried in personal luggage when leaving Saudi Arabia.
- The departure from Saudi Arabia must occur within 90 days of purchase.
Non-eligible purchases include:
- Services used within the Kingdom (e.g., hotels, restaurants).
- Vehicles, boats and aircraft.
- Food and beverages.
- Oil, gas and derivatives.
- Tobacco products and alternatives.
REFUND METHODS
- Tourists can choose one of the following refund methods:
- Cash refund: Available up to SAR 5,000 per person per day at designated counters; or
- Card Refund: For amounts exceeding SAR 5,000, the refund will be credited to the tourist’s payment card within 3 business days
REQUIRED DOCUMENTS FOR VAT REFUND CLAIM
Tourists must present:
- Valid passport.
- Original tax invoices and completed VAT refund form issued by VAT-registered retailers at the time of purchase.
- Proof of departure (e.g., boarding pass or travel itinerary)
KEY ACTIONS FOR RETAILERS
- Get certified to participate in the VAT refund scheme.
- Train staff to verify passports or GCC IDs.
- Issue accurate tourist VAT refund invoices.
- Display clear signage to inform customers about VAT refund availability
KEY TIPS FOR TOURISTS
- Shop only at certified stores to ensure refund eligibility.
- Present your passport or GCC ID at the time of purchase to receive the required refund documents.
- Keep all original invoices and refund forms safe and accessible during your trip.
- Carry purchased goods in your hand luggage for customs inspection at departure.
- Validate your refund at the airport before leaving Saudi Arabia. -TradeArabia News Service