How Tourists Can Claim VAT Refund in Saudi Arabia?

Saudi Arabia’s tourism industry is witnessing remarkable growth as part of Vision 2030, which aims to attract 150 million annual visitors by 2030. To enhance the travel experience and promote retail spending, the Kingdom has introduced a VAT refund in Saudi Arabia scheme for tourists and GCC nationals. This initiative allows travelers to reclaim 15% VAT on eligible purchases, bringing Saudi Arabia in line with international tax-free shopping standards.

What is VAT Refund in Saudi Arabia?  

Saudi Arabia introduced Value Added Tax (VAT) in 2018 at a rate of 5%, later increasing it to 15% in July 2020. VAT applies to most goods and services, including imports, and is regulated by the Zakat, Tax and Customs Authority (ZATCA).

The tourist VAT refund scheme enables non-resident visitors to recover VAT paid on qualifying retail purchases. This makes shopping in the Kingdom more affordable and attractive, especially for international travelers and GCC nationals.

Eligibility Criteria  

Only “non-resident visitors” can claim VAT refund. GCC nationals who are Saudi residents are NOT eligible. Only GCC nationals who are NOT Saudi residents can claim. 

To qualify for a VAT refund in Saudi Arabia, the following conditions must be met:

1. Eligible Applicants:  Tourists and GCC nationals who are non-residents, aged 18 or older, and hold a valid passport or GCC ID.

2. Minimum Spend:  A minimum purchase of SAR 500 in a single transaction, or across up to three receipts from the same store on the same day. Each individual invoice generally must be at least SAR 100 (Global Blue threshold). You can combine invoices from the same store on the same day to reach SAR 500 total.

3. Goods Condition: Items must be unused, intended for personal use, and exported within 90 days of purchase.

4. Excluded Items:

• Hotel accommodation and restaurant services
• Vehicles, boats, and aircraft
• Food, beverages, tobacco, and fuel
• Telecommunication and general services are also not refundable.
   

Step-by-Step VAT Refund Process  

1. Shop at Approved Retailers - 

Purchase goods from ZATCA-approved stores displaying the “Tax Free” or “VAT Refund Available” sign.

VAT Refund is operated by Global Blue under contract with ZATCA.

The store must be connected to the Electronic System of Tax-Free Shopping (ZATCA integrated). Only integrated stores can provide valid digital tags.

2. Request a Refund Form - 

Present your passport or GCC ID at checkout to obtain a VAT refund form and ensure your invoice is eligible.

3. Validate at the Airport - 

Before departing Saudi Arabia, validate your refund form at the ZATCA VAT Refund Kiosks located at major airports:

• Riyadh: King Khalid International Airport
• Jeddah: King Abdulaziz International Airport
• Dammam: King Fahd International Airport

VAT Refund kiosks are also available at Medina Airport and selected land border exit points.

4. Select Your Refund Method -

• Cash Refund: Up to SAR 5,000 per day
• Card Transfer: Refund credited directly to your bank card (mandatory at Jeddah’s North Terminal)

In many airports now, cash refund counters are limited and digital refund (card transfer) is the primary method. Cash availability varies by airport.
 

Important Tips for Tourists  

• Keep goods in your hand luggage for customs inspection.
• Carry all necessary documents  invoices, passport, and boarding pass.
• Use the Global Blue mobile app to track your refund status and locate participating stores.
• Ensure goods are exported within 90 days of purchase to remain eligible.
   

Impact and Benefits  

Saudi Arabia’s VAT refund scheme delivers multiple advantages:

• Boosts Tourism: Makes the Kingdom more attractive to global visitors.
• Encourages Retail Spending: Increases sales in luxury, fashion, and electronics sectors.
• Aligns with Global Standards: Puts Saudi Arabia among leading tax-free shopping destinations worldwide.
• Enhances Visitor Experience: Offers travelers meaningful financial benefits and convenience.
   

Conclusion  

The Saudi VAT refund scheme represents a significant milestone in the Kingdom’s journey toward becoming a leading global tourism hub. It enhances the shopping experience, supports local retailers, and contributes to economic diversification under Vision 2030.

For travelers and businesses seeking expert assistance with VAT refund or compliance, Reyson Badger provides comprehensive VAT services in Saudi Arabia. From registration to refund coordination, their specialists ensure smooth processing and adherence to ZATCA regulations.

Whether you’re a tourist exploring Saudi Arabia or a business managing VAT obligations, Reyson Badger helps you turn VAT into value  efficiently and compliantly.