Tourists Can Now Get VAT Refund In Saudi Arabia

Saudi Arabia has embarked on a new initiative aimed at boosting its tourism and retail sectors by introducing a value added tax (VAT) refund programme for tourists and GCC nationals. This scheme allows eligible visitors to recover 15% VAT on purchases made at over 1,400 authorised retail outlets throughout the Kingdom, according to Saudi Gazette reports.

The introduction of this refund system is a strategic move to make Saudi Arabia a more attractive destination for global travelers, focusing on enhancing their overall shopping and tourism experience.

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To be eligible for the VAT refund, non-resident tourists must be at least 18 years old. The scheme stipulates that the total value of purchases must surpass SR500. Additionally, the purchased items must remain unused, be intended for personal use, and be exported out of Saudi Arabia within 90 days from the purchase date.

However, it's important to note that certain purchases, such as services including accommodation and meals, as well as specific products like vehicles, boats, aircraft, food and beverages, tobacco products, and petroleum derivatives, do not qualify for this refund.

For those looking to benefit from this refund, a VAT exemption form can be requested at participating retail outlets by presenting a passport or GCC ID. This allows shoppers to consolidate up to three receipts from the same retailer on the same day to meet the minimum spending requirement.

When exiting the country, travelers must have their tax-free form validated at one of the 18 verification points currently operational at three major international airports in Saudi Arabia. These include 10 points at King Khalid International Airport in Riyadh, four at King Abdulaziz International Airport in Jeddah, and four at King Fahd International Airport in Dammam.

Refunds can be processed either directly to a card or in cash, subject to a daily limit of SR5,000 per individual for cash refunds. It's noteworthy, however, that cash refunds are not available at the North Terminal of Jeddah's King Abdulaziz Airport.

The VAT refund programme is designed to encourage sustainable tourism spending by simplifying the shopping process for visitors. It also aims to motivate tourists to prolong their visits and delve deeper into Saudi Arabia's diverse retail offerings, thereby contributing to the Kingdom's broader economic objectives.