Saudi Arabia introduces a new Value-Added Tax (VAT) refund system!
Saudi Arabia's VAT Refund Program Enhances Tourism and Shopping Experience
Saudi Arabia has introduced a VAT refund program for non-resident tourists and GCC nationals aged 18 and above, aiming to boost retail spending and position the Kingdom as a competitive global shopping destination. The program allows eligible individuals to reclaim the 15% VAT on qualifying purchases made at over 1,440 authorized retail outlets across the Kingdom, provided their total purchases exceed SAR 500.
Eligibility
To be eligible for the VAT refund, purchases must be unused, for personal use only, and goods must be exported within 90 days of purchase. Eligible individuals must present a passport or GCC ID at the point of sale to obtain a VAT exemption form.
Eligible Goods
Most goods sold by authorized retailers are eligible. However, certain items like vehicles, boats, aircraft, tobacco products, petroleum derivatives, and services like accommodation and meals are excluded from the VAT refund program.
Steps to Claim the Refund
- Request a VAT exemption form at the point of purchase by showing your passport or GCC ID.
- Keep the purchase receipts and the VAT exemption form.
- At the time of leaving Saudi Arabia, validate the VAT refund forms at one of the designated Verification Points (VTPs) located at the main international airports:
- 10 verification points at King Khalid International Airport, Riyadh
- 4 at King Abdulaziz International Airport, Jeddah (cash refunds not available at the North Terminal)
- 4 at King Fahd International Airport, Dammam
- After validation, claim the VAT refund either by card payment, or cash refund, up to SAR 5,000 per day per person (except at certain terminals where cash is unavailable).
This VAT refund initiative aims to enhance the tourism experience and contribute to Saudi Arabia's Vision 2030 goals. For more information, inform the retailer that you wish to claim a VAT refund before you pay.
[1] Saudi Arabian General Authority of Zakat and Tax (GAZT). (2021). VAT Refund for Tourists and GCC Nationals. Retrieved from https://www.gazt.gov.sa/wps/wcm/connect/gazt_en/gazt_en/services/vat/vat_refund
[2] Saudi Arabian General Authority of Zakat and Tax (GAZT). (2021). VAT Refund for Tourists and GCC Nationals: Frequently Asked Questions. Retrieved from https://www.gazt.gov.sa/wps/wcm/connect/gazt_en/gazt_en/services/vat/vat_refund/faqs
[3] Saudi Arabian General Authority of Zakat and Tax (GAZT). (2021). VAT Refund for Tourists and GCC Nationals: How to Claim. Retrieved from https://www.gazt.gov.sa/wps/wcm/connect/gazt_en/gazt_en/services/vat/vat_refund/howtoclaim
[4] Saudi Arabian General Authority of Zakat and Tax (GAZT). (2021). VAT Refund for Tourists and GCC Nationals: Participating Retailers. Retrieved from https://www.gazt.gov.sa/wps/wcm/connect/gazt_en/gazt_en/services/vat/vat_refund/participatingretailers
[5] Saudi Arabian General Authority of Zakat and Tax (GAZT). (2021). VAT Refund for Tourists and GCC Nationals: Refund Limits. Retrieved from https://www.gazt.gov.sa/wps/wcm/connect/gazt_en/gazt_en/services/vat/vat_refund/refundlimits
The VAT refund program in Saudi Arabia encourages travel, as non-resident tourists and GCC nationals can reclaim the 15% VAT on eligible food items, provided they meet the program's conditions. Purchases must be for personal use only, unused, and exported within 90 days.
Businesses in Saudi Arabia, such as those selling food, may benefit from the VAT refund program as it could attract more customers looking to save on their travel expenses. However, certain items like vehicles, tobacco products, petroleum derivatives, and services like accommodation and meals are excluded from the VAT refund program.
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