Saudi Arabia Launches VAT Refund Program for Tourists

Saudi Arabia has officially implemented its value-added tax (VAT) refund program for tourists and Gulf Cooperation Council (GCC) nationals. This initiative allows eligible visitors to reclaim 15% VAT on qualifying purchases at 1,442 authorized retail outlets across the Kingdom.

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Objectives of the VAT Refund Program

This move is part of Saudi Arabia’s broader strategy to enhance the tourism and shopping experience, making the Kingdom a more attractive global destination.

Eligibility Criteria

  • Tourist Age: Non-resident tourists aged 18 and older.
  • Purchase Requirements: Total purchases must exceed SR500.
  • Goods: Items must be unused, for personal use only, and exported within 90 days of purchase.
  • Exclusions: Services such as accommodation and meals, as well as specific items like vehicles, boats, aircraft, food and beverages, tobacco products, and petroleum derivatives, are not eligible.

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How to Claim the Refund

  1. Requesting a VAT Exemption Form: Shoppers can ask for a VAT exemption form at the point of sale by presenting their passport or GCC ID.
  2. Combining Invoices: Up to three invoices from the same retailer on the same day can be combined to meet the eligibility threshold.

Validation and Refund Process

  • Verification Points: Travelers must validate their tax-free form at one of 18 verification points located at three international airports:
    • King Khalid International Airport in Riyadh: 10 points
    • King Abdulaziz International Airport in Jeddah: 4 points
    • King Fahd International Airport in Dammam: 4 points
  • Refund Methods: Refunds can be issued either by card or in cash, with a daily cash refund cap of SR5,000 per person. Note that cash refunds are not available at the North Terminal of Jeddah’s King Abdulaziz Airport.

Goals of the Initiative

The VAT refund initiative aims to promote sustainable tourism spending, streamline shopping experiences, and encourage visitors to extend their stays and explore more of Saudi Arabia’s retail landscape.

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