The New Saudi Arabia VAT Refund for Tourists Explained

 


The New Saudi Arabia VAT Refund for Tourists Explained

Published on April 21, 2025 | 10:51 am

Imagine exploring the ancient wonders and vibrant culture of Saudi Arabia—and now, getting a little extra back in your pocket! Starting April 18th, 2025, tourists visiting the Kingdom can claim a 15% refund on their purchases through the Saudi Arabia VAT refund program. Read on to discover how this exciting new initiative makes your Saudi Arabian journey even more rewarding.

To dive deeper, check our full post on Saudi Arabia VAT refund for tourists.

What the Saudi Arabia VAT Refund Means for Tourists

Under the new regulation by the Zakat, Tax and Customs Authority (ZATCA), tourists are now eligible for a 15% VAT refund on eligible goods and services purchased during their stay. This means purchases at participating vendors are effectively zero-rated for tourists at the point of refund.

GCC Travelers Also Benefit

Tourists from Gulf Cooperation Council (GCC) countries, including the UAE, are also eligible under this refund scheme. This unifies the refund process for all non-resident tourists and strengthens tourism integration across the GCC region.

How the VAT Refund Process Will Work

ZATCA will authorize specific service providers to facilitate the refund process. These providers will help tourists submit claims and ensure compliance with the system.

Note: Tourists and refund providers will be jointly accountable for any fraudulent or erroneous claims.

Expected Details from ZATCA

  • Eligibility criteria for tourists
  • Qualifying goods and services
  • Minimum purchase thresholds
  • Steps to submit a VAT refund claim
  • Conditions for businesses to become authorized suppliers

VAT Compliance for Saudi Businesses

  • Transfer Notifications: Notify ZATCA within 30 days of business transfers.
  • Post-Deregistration Duties: Maintain tax records even after deregistration.
  • Taxable Transfers: Non-compliant transfers may be taxed as regular sales.

Conclusion

The launch of the Saudi VAT refund program for tourists marks a strategic effort to boost travel and retail activity in the Kingdom. Whether you’re a tourist or a local business, understanding this update is essential to making the most of your journey or operations.

Need help understanding VAT rules in Saudi Arabia or the UAE? Contact Unicorn Global Solutions for expert tax support.


© 2025 Unicorn Global Solutions 

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