VAT Refund in Saudi Arabia 2025 – Tourist Eligibility & Claim Process

What Is VAT Refund for Tourists in Saudi Arabia?

Understanding Value-Added Tax (VAT) and How It Works

Ever heard of VAT but are not quite sure what it means? You’re not alone.

In Saudi Arabia, a 15% Value-Added Tax is applied to all products and services. However, here’s the great thing: if you’re a visitor, you can get the money back. This is right — you can receive a VAT reimbursement on your purchases and expenditures.

Why Saudi Arabia Offers VAT Refund to Tourists

This is all part of the larger picture. In the Vision 2030 plan, Saudi Arabia is pushing hard to become a world-class tourist destination. Offering the possibility of a tax refund is an excellent incentive for travellers to spend more and discover.

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Impact of VAT Refund on Saudi Tourism Strategy

This isn’t about just giving back money. It’s about promoting tourism. With goals like 150 million people visiting as well as SAR 346.6 billion in tourist spending by 2025, such initiatives are a smart choice.

Who Can Claim a VAT Refund in Saudi Arabia?

Tourist Definition by ZATCA (GCC vs. Non-GCC Residents)

So, who’s considered a tourist? According to ZATCA — Saudi Arabia’s tax authority — a tourist is someone who isn’t a GCC resident (at least until the Electronic Services Law kicks in).

Even Gulf Cooperation Council (GCC) tourists qualify for a refund right now. That means if you’re visiting from the UAE, Bahrain, Oman, etc., you’re still eligible.

Can Business Travellers or Crew Members Apply?

Nope. If you’re a member of a transportation team or are travelling on business with specific requirements, you probably won’t be able to qualify.

VAT Refund Eligibility for Non-Resident Businesses

Here’s the part that becomes interesting. If your business is VAT-registered in a nation that has a reciprocal agreement with Saudi and Saudi Arabia, you could receive a tax rebate also — as long as you meet the requirements.

Which Goods & Services Are Eligible for VAT Refund?

List of Eligible Purchases & Excluded Items

You can claim a VAT refund on:

• Electronics
• Clothes
• Jewelry
• Perfumes

But not on:

• Vehicles
• Food and drink
• Tobacco products

Requirements for Eligible Goods (Electronic Invoicing, Proof of Payment)

To be eligible, your receipt must be a valid electronic tax invoice and indicate the VAT you have paid. Additionally, you must provide proof of payment.

Minimum Spend Threshold for Claiming VAT Refund

As of now, you must spend a minimum of SAR 1000 to be eligible. This may be changed, so it’s best to keep up-to-date via ZATCA’s website.

How to Claim VAT Refund in Saudi Arabia – Step-by-Step Guide

Required Documents

You’ll need:

• Passport
• Proof of departure (like a boarding pass)
• Tax invoices
• Payment proof

ZATCA Online Portal Submission & Process

The process is done electronically. Go to the ZATCA portal, upload your documents, and complete the refund application.

Claim Timeline: Application to Refund (Approval & 60-Day Limit)

After approval, you will receive the payment within 60 days. ZATCA will respond to claims within 20 days and issue refunds swiftly.

Role of ZATCA & Authorised VAT Refund Providers

What Is ZATCA and Its Responsibility?

ZATCA is the acronym for Zakat, Tax and Customs Authority. They are responsible for everything from tax rules to refund approvals.

Approved Service Providers for VAT Refund Processing

ZATCA will select one or more approved service providers to handle refunds. They’ll take care of the paperwork and pay the refunds.

Shared Liability Between Tourists and Service Providers

If something isn’t right, the person who is applying and the service provider are jointly accountable. Make sure that everything is legitimate when you make an application.

FAQS on Saudi VAT Refund for Tourists (2025)

What if I don’t meet the spending threshold?

You won’t be eligible to receive a refund. Keep those receipts until you reach SAR 1,000.

Can I claim a refund for hotel stays?

No. Accommodation services are excluded.

Do GCC tourists get the same refund as others?

Yes — at least until GCC VAT systems are unified.

When will the refund be credited?

Most of the time, within 60 days after approval.

What if my documents are incomplete?

ZATCA might reject your claim. Make sure to double-check everything.

Can I apply on behalf of someone else?

Only with a power of attorney or a business mandate.

Are online purchases eligible?

If bought from an approved provider, yes.

Will I get a full VAT refund?

Yes, unless a service charge is applied by the provider.

How many times can I apply?

One application per calendar year.

Is a cash refund available at airports?

Coming soon, but currently, refunds are done digitally.

Saudi Arabia vs UAE VAT Refund System – A Comparison

UAE’s Online VAT Refund for Tourists

UAE introduced the same system in December 2024. However, it focuses mostly on online purchases.

Key Differences & What Saudi Tourists Should Know

Saudi’s system requires the physical export of goods and stricter documentation. Also, the UAE offers quicker refunds (in some cases).

VAT Refund Benefits for Tourists – Why It Matters

Enhancing the Shopping Experience for Visitors

Who doesn’t love getting money back? This makes shopping in Saudi Arabia more exciting and rewarding.

Boosting Spending & Economic Growth

Refunds can help tourists spend more money, which is a win-win.

Aligning with Saudi Arabia’s National Tourism Strategy

It’s all part of making Saudi Arabia a global destination under Vision 2030.

Key Deadlines, Policy Changes & Future Updates by ZATCA

Circulars & Public Consultations (2023–2025)

ZATCA announced updates through Istitlaa as well as its website, some of them only in Arabic.

Upcoming Electronic Services Law & Tourist Processing

Once this is in effect, GCC tourists will no longer be able to qualify in the same way.

Stay Updated via ZATCA Platforms

Visit their website regularly for the latest news.

Final Thoughts – How Tourists Can Maximise Their VAT Refund

Travel Smart: Shop at Approved Stores

Only these offer valid invoices for a refund.

Save All Invoices & Receipts

Without them, there’s no VAT refund.

Submit Early to Avoid Delays

The earlier, the better. Don’t wait till the last minute.