Tourists to Receive VAT Refunds on Eligible Purchases in Saudi Arabia

KSA, 21 April, 2025 : Tourists visiting Saudi Arabia will now be eligible for a refund of the 15% Value Added Tax (VAT) paid on goods and services during their stay. The Zakat, Tax and Customs Authority (ZATCA) has amended the VAT Regulation, and the new rules came into effect on Friday, April 18.

Under the amendment, VAT on eligible purchases will be charged at zero percent for tourists, and the tax amount will be refunded by authorized service providers at the time of departure. ZATCA will appoint approved providers to manage the refund process.

Tourists from GCC countries will also be treated as non-GCC tourists for VAT refunds until the Electronic Service Law is implemented.

ZATCA’s governor is now empowered to issue detailed requirements, including eligibility criteria for tourists and goods, minimum purchase amounts, and refund application procedures.

Separately, the amendments also clarify rules on transferring economic activities. If a business is transferred, the new owner must notify ZATCA within 30 days. Even after deregistration, businesses remain responsible for retaining records and settling any outstanding tax dues.