Sunday, April 20, 2025
Saudi Tourists to receive VAT refunds upon their departure
Tourists to Saudi Arabia will get a refund for the 15% value added tax (VAT) they paid on all purchases when they leave the country. The Zakat, Tax, and Customs Authority (ZTCA) has specifically amended the VAT Regulation to reflect these changes. Trending Video: Saudi Arabia bans entry into Makkah without valid permit
Starting Friday, April 18, 2025, the new value-added tax exemption was implemented.
According to the authorities, the new law states that service providers must repay customers the amount of value-added tax (VAT) that has been charged on eligible goods and services before they leave the kingdom. The VAT rate will be 0% on certain goods and services.
To facilitate tax refunds for tourists, the authority is now responsible for authorizing one or more recognized service providers under the amendment.
The ZTCA stressed that the tourist and the authorized service provider are equally responsible for returning any cash that was refunded in violation of the rules and regulations governing refunds or decisions made by the relevant authority concerning tourist tax refunds.
Until the Electronic Service Law is put into effect, tourists from GCC nations will be considered the same as tourists from outside the GCC in this regard. Read: Two more new stations opened on Riyadh Metro Orange Line
The ZTCA gave its governor the power to refund taxes to tourists by issuing the appropriate paperwork. In this document, you will find all the necessary details regarding the tax refund mechanism for tourists, including how it is to be implemented, what kinds of goods can be refunded, how much those goods can be refunded, what qualifies a taxable supplier as an approved supplier, and how to apply for a refund.
On a separate note, the VAT regulation changes have clarified that, excluding deregistration, the recipient of a taxable person's economic activity must inform the ZTCA no later than 30 days after the transfer date.
Taxpayers whose registrations have been deregistered are required by the relevant authorities to keep all relevant documents, including invoices, notices, books, and records. Deregistration does not relieve a taxable person of their duty to pay any dues owed to the authority prior to the deregistration date.
As stated in the revised regulation, the goods and services representing a transferred economic activity will be considered taxable if the transfer does not fulfill all the requirements, such as notifying the transfer authority. See Also: Saudi Arabia offers tax exemptions and incentives to attract International talent
Saudi tourists to receive VAT refunds upon their departure. Saudi-Expatriates.com
