Imagine exploring the ancient wonders and vibrant culture of Saudi Arabia, and now, getting a little extra back in your pocket! Starting April 18th, tourists visiting the Kingdom can claim a 15% VAT refund on their purchases. Read on to discover how this exciting new initiative makes your Saudi Arabian journey even more rewarding.
At Unicorn Global Solutions, we’re always looking for ways to enhance your travel experiences. That’s why we’re thrilled to share the latest news from Saudi Arabia that’s set to make your visit even more appealing. The Zakat Tax and Customs Authority (ZATCA) has officially implemented a new regulation allowing tourists to receive a refund on the Value Added Tax (VAT) they pay on goods and services during their stay. This significant move, effective from April 18th, opens up exciting opportunities for travelers from around the globe.
What Does This Mean for You?
Under these updated regulations, the standard 15% VAT you pay on eligible purchases from authorized service providers can now be claimed back upon your departure from Saudi Arabia. This effectively means that the VAT rate on your tourist purchases will be zero-rated at the point of refund. Whether indulging in exquisite local crafts, savoring delicious cuisine, or acquiring memorable souvenirs, a portion of your spending will be returned to you as you conclude your unforgettable trip
Good News for GCC Travelers Too!
Adding to the positive developments, tourists from fellow Gulf Cooperation Council (GCC) countries, including our neighbors in the UAE, will be treated the same way as tourists from outside the GCC when it comes to VAT refunds. This uniform approach ensures a seamless and equitable process for all visitors, fostering even greater connectiv ity and tourism within the region.
How Will the Refund Process Work?
ZATCA will be authorizing specific service providers to manage the VAT refund process for tourists. These approved entities will play a crucial role in facilitating the refunds. It’s important to note that these providers will also share responsibility with the tourist for any refunds that are found to have been claimed improperly, ensuring accountability and the integrity of the system.
While the full implementation details are being finalized, with the Electronic Service Law still on the horizon, the current regulations provide a clear pathway for tourists to benefit from this exemption.
Stay Tuned for More Details
The Governor of ZATCA has been empowered to issue comprehensive guidelines that will further clarify the specifics of the tourist VAT refund scheme. These guidelines will be crucial in outlining:
- The step-by-step implementation process.
- The criteria that tourists need to meet to be eligible for a refund.
- The types of goods that will qualify for VAT refunds.
- Any minimum purchase values that may be set.
- The requirements for businesses to become approved suppliers for the scheme.
- The detailed application process that tourists will need to follow to claim their refunds.
As these guidelines are released, Unicorn Global Solutions will ensure to keep you updated with all the necessary information to make the most of this fantastic opportunity.
Important Updates for Businesses in Saudi Arabia
In addition to the exciting news for tourists, ZATCA has also provided important clarifications regarding VAT regulations for businesses operating within Saudi Arabia:
- Transfer of Economic Activities: Businesses transferring their operations to another entity are now required to notify ZATCA within 30 days of the transfer date, unless they have already deregistered for VAT.
- Post-Deregistration Obligations: Businesses whose VAT registration has been cancelled are reminded that they must continue to maintain all necessary invoices, records, and documentation. Deregistration does not absolve them of any outstanding VAT liabilities.
- Compliance with Transfer Conditions: The amended regulations clearly state that if the transfer of economic activity does not fully comply with the stipulated conditions, including proper notification to ZATCA, the goods and services involved in the transfer will be considered taxable.
These updates underscore ZATCA’s commitment to ensuring clarity and compliance within the VAT system for businesses.
Need Help?
Keep an eye on our blog for further updates and detailed information on how you can claim your VAT refund and make the most of your Saudi Arabian adventure!
At Unicorn Global Solutions, we simplify the process for you. Unicorn Global Solutions is here to help! Text us on whatsApp or call us today .
Frequently Asked Questions (FAQs)
Tourists who are not permanent residents of Saudi Arabia or any other Gulf Cooperation Council (GCC) state that applies VAT are eligible. Until the Electronic Service Law is implemented, tourists from GCC countries will be treated the same as those from outside the GCC for VAT refunds.
- Tourists can avail of a refund of 15% VAT paid on eligible goods and services purchased during their stay in Saudi Arabia.
Tourists will receive a refund of the VAT amount paid when they depart from Saudi Arabia. The Zakat Tax and Customs Authority (ZATCA) will authorize specific service providers to handle the tax refund process. These providers will share responsibility with the tourist for any improperly claimed refunds. Specific details on the application process will be outlined in guidelines issued by ZATCA's governor.
- The guidelines to be issued by ZATCA's governor will specify any minimum purchase values required to be eligible for a VAT refund, as well as the types of goods that qualify for a refund. Currently, this information is not yet detailed.
- The new VAT exemption for tourists came into effect on April 18, 2025.
Source
This article contains summarized content based on the original report published by Gulf News.
