Saudi Arabia Introduces VAT Refunds for Tourists

Introduction

In a strategic move to bolster tourism, Saudi Arabia has implemented a Value Added Tax (VAT) refund scheme for tourists, effective April 18, 2025. This initiative allows non-resident visitors to reclaim the 15% VAT paid on eligible purchases and services during their stay.

Eligibility Criteria

• Who Qualifies: Non-resident tourists, including those from Gulf Cooperation Council (GCC) countries, are eligible until the Electronic Service Law is enacted.

• Purchase Requirements: Eligible purchases must range between SAR 150 and SAR 10,000 and be made at ZATCA-authorized retailer.

Refund Process

• Authorized Retailers: Tourists must shop at retailers approved by the Zakat, Tax and Customs Authority (ZATCA).

• Claiming Refunds: Refunds are processed at designated points upon departure from the Kingdom, facilitated by authorized service providers.

Impact on Tourism

This VAT refund scheme aligns with Saudi Arabia's Vision 2030, aiming to enhance the shopping experience for international visitors and stimulate economic growth through increased tourism.