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The Tax Refund Procedure in Saudi Arabia allows eligible tourists and GCC visitors to reclaim 15% VAT on qualifying purchases, providing a seamless and beneficial shopping experience while supporting the Kingdom’s Vision 2030 goals.
Saudi Arabia has launched a VAT refund scheme for tourists and GCC nationals, marking a significant step towards boosting tourism and retail spending in line with its Vision 2030 agenda. This system enables non-resident visitors to reclaim the 15% VAT paid on eligible purchases made at approved retail outlets across the Kingdom, making Saudi Arabia a more attractive destination for international shoppers.
This article breaks down the entire tax refund procedure in Saudi Arabia, explaining eligibility, qualifying purchases, the refund process, and important tips to help you maximize your benefits. Whether you are a first-time visitor or planning multiple trips, this guide will help you understand the VAT refund system easily.
Who Can Claim a VAT Refund in Saudi Arabia?
The VAT refund scheme is designed specifically for non-resident visitors and GCC nationals who meet certain criteria. Below are the key eligibility requirements:
- Non-resident tourists aged 18 and above holding a valid passport, who do not reside or have a place of business in Saudi Arabia or any GCC member state.
- GCC nationals from Bahrain, Kuwait, Oman, Qatar, and the UAE, who present a valid passport or GCC ID and are treated as non-residents for VAT refund purposes.
- Travelers must exit the Kingdom within 90 days from the date of purchase to qualify for the refund.
- For non-GCC non-residents, the country of residence must have reciprocal VAT refund arrangements with Saudi Arabia.
These conditions ensure that the refund program benefits genuine tourists and visitors without complicating local tax regulations.
What Purchases Qualify for VAT Refund?
Not all purchases are eligible for the VAT refund. To qualify, your purchases must meet the following criteria:
- Minimum spend: You must spend at least SAR 500 (approximately US$133) in a single transaction or combine up to three receipts from the same store on the same day to meet this threshold.
- Type of goods: Only physical goods that are unused, for personal use, and intended for export qualify. This excludes services and consumables.
- Export requirement: The purchased goods must be exported outside Saudi Arabia within 90 days from the purchase date.
What is Excluded from VAT Refund?
The following goods and services are explicitly excluded from the VAT refund scheme:
- Services such as hotel stays, dining, and other hospitality-related expenses.
- Large-ticket items like vehicles and boats.
- Consumable products, including food and beverages, tobacco, and fuel.
These exclusions align with international VAT refund standards, ensuring the system is used for exported retail goods only.
Step-by-Step Guide: How to Claim Your VAT Refund in Saudi Arabia
The VAT refund process is divided into three main stages: shopping, verification at departure, and refund issuance. Here is a detailed, beginner-friendly walkthrough.
1. Shopping at Approved Retail Outlets
- Shop at stores authorized by the Zakat, Tax and Customs Authority (ZATCA) that display “Tax Free” or “VAT Refund Available” signs.
- Ensure your total purchase is at least SAR 500. You may combine up to three receipts from the same store on the same day to reach this amount.
- Present your valid passport or GCC ID at the point of sale and request a VAT refund form.
- Keep all receipts and the VAT refund form carefully; you will need these for verification.
2. Validate Your VAT Refund at the Airport
- Before leaving Saudi Arabia, visit one of the designated VAT refund kiosks located at major international airports:
- King Khalid International Airport (Riyadh) – 10 refund points
- King Abdulaziz International Airport (Jeddah) – 4 refund points
- King Fahd International Airport (Dammam) – 4 refund points
- Present your VAT refund forms, passport or GCC ID, and purchased goods (unused and for personal use).
- Complete identity verification and allow kiosk staff to inspect your receipts and goods if requested.
- Validate your refund claim at the kiosk before check-in or security, allowing enough time for this process.
3. Receive Your VAT Refund
- After successful validation, you can choose to receive your refund either as cash or via card transfer.
- Cash refunds are available up to SAR 5,000 per day but are not offered at Jeddah’s North Terminal.
- Card refunds are transferred directly to your payment card and are available at all airports.
Frequently Asked Questions (FAQ)
Who is eligible for the VAT refund in Saudi Arabia?
Non-resident tourists aged 18 and above, and GCC nationals treated as non-residents for VAT purposes, who make qualifying purchases and exit Saudi Arabia within 90 days of purchase.
What is the minimum purchase amount to qualify for VAT refund?
The minimum spend is SAR 500 in a single transaction or combined receipts from the same store on the same day.
Can I claim VAT refund on services like hotel stays or meals?
No, services such as hotel stays, dining, and consumables like food and beverages are excluded from the VAT refund scheme.
Where can I validate my VAT refund claim before leaving Saudi Arabia?
At designated VAT refund kiosks located in King Khalid International Airport (Riyadh), King Abdulaziz International Airport (Jeddah), and King Fahd International Airport (Dammam).
What are the refund payment options?
You can receive your refund in cash (up to SAR 5,000 per day) or as a card transfer. Note that cash refunds are not available at Jeddah’s North Terminal.
How long do I have to export the purchased goods?
Goods must be exported within 90 days from the date of purchase to maintain refund eligibility.
Can businesses claim VAT refunds on behalf of non-resident clients?
Yes, but the process requires registration with ZATCA and submission of detailed documentation through the official portal.
Related
Plan ahead, keep your documents organized, and make use of the designated kiosks at departure airports to claim your VAT refund hassle-free. This initiative reflects Saudi Arabia’s commitment to enhancing the visitor experience and fostering a vibrant, diversified economy.
Happy shopping and safe travels!
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