Riyadh: Tourists visiting Saudi Arabia can now claim a refund on the Value Added Tax (VAT) paid on goods and services, according to the Zakat, Tax, and Customs Authority (ZATCA). The VAT rate currently stands at 15%, and the new refund system officially came into effect on Friday, April 18, 2025.
Under the revised regulation, service providers will apply a 0% VAT rate for tourists, and the VAT amount paid will be refunded when tourists depart the country. ZATCA has simplified the refund procedures and authorized multiple service providers to facilitate the process.
To be eligible for a refund, tourists must purchase goods and services from ZATCA-authorized stores only. These outlets can be identified by signs such as “Tax Free Shopping” or “VAT Refund Available.” Most malls and help desks across Saudi Arabia display lists of such authorized stores. Over 400 stores in Riyadh, 300 in Jeddah, and 200 in Dammam currently offer this service.
Smaller shops or stores not registered with ZATCA are excluded from the refund system. Therefore, tourists on a visitor visa are advised to confirm store authorization before purchasing.
How to Claim a Refund:Authorized stores will register VAT-free purchases through the ZATCA system using the tourist’s passport. At the airport, tourists must present their passport, boarding pass, and digital invoice at the ZATCA counter. Refunds up to SAR 1,000 will be issued in cash. Higher amounts can be claimed electronically via ZATCA’s website, with refunds credited to the tourist’s bank account or credit card.
Refund Conditions:
Purchase amount must be between SAR 150 and SAR 10,000.
Bills must be retained for submission.
Refunds apply only to personal-use items like clothing, electronics, jewelry, and perfumes.
Items must not be used in Saudi Arabia.
Tourists must leave the country within 90 days of purchase.
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