Tourists in Saudi Arabia Can Now Get 15% VAT Back

Saudi Arabia has rolled out a major update for visitors: tourists are now eligible to get back the 15% value-added tax (VAT) they pay on shopping and services during their stay. The move officially took effect on Friday, April 18, following amendments to the VAT regulations by the Zakat, Tax and Customs Authority (ZATCA).

How the VAT Refund Works

Under the new rule, eligible goods and services purchased by tourists will be taxed at zero percent, meaning travelers can claim back the VAT they initially paid. Refunds will be issued at the point of departure from the Kingdom through an approved service provider.

ZATCA will authorize one or more providers to handle the refund process on its behalf. These providers will be jointly responsible with the tourist for any errors or violations in the refund claims.

GCC Tourists Included for Now

Interestingly, tourists from neighboring Gulf countries (GCC) will also be treated like international tourists when it comes to VAT refunds—at least until the region implements the Electronic Service Law.

More Rules for Businesses and Transfers

The new regulation also tightens rules around business transfers. If a taxable business is passed on to someone else, the new owner must notify ZATCA within 30 days unless the previous owner is already deregistered.

Additionally, deregistered businesses are still required to keep all tax-related records and remain accountable for any unpaid dues from before their deregistration date.

What’s Next?

ZATCA’s governor will announce more detailed guidelines soon. These will cover everything from who qualifies as a tourist, which items are eligible for refunds, and what counts as an approved seller under the system.

This update is part of Saudi Arabia’s continued push to attract more tourists and make the country more traveler-friendly, especially for those who enjoy shopping and spending during their visit.

This article was previously published on saudimoments. To see the original article, click here