Saudi Arabia Launches VAT Refund Program for Tourists and GCC Nationals
Saudi Arabia has officially rolled out its VAT refund program for tourists and Gulf Cooperation Council (GCC) nationals, enabling eligible visitors to reclaim 15% VAT on qualifying purchases made across 1,442 authorized retail outlets. This initiative is part of the Kingdom’s broader strategy to boost tourism, enhance the retail experience, and position Saudi Arabia as a premier global shopping destination.
How the VAT Refund Works for Tourists
To qualify for a refund:
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The traveler must be a non-resident tourist or GCC national, aged 18 or older.
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The minimum total purchase must exceed SAR 500.
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Purchases must be for personal use, unused, and exported within 90 days of the transaction.
Excluded Items and Services
Refunds do not apply to:
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Accommodation and restaurant bills
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Vehicles, boats, aircraft
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Food, beverages, and tobacco products
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Petroleum-based products
Claim Process
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At checkout, eligible shoppers present a passport or GCC ID to receive a VAT refund form.
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Up to three invoices from the same retailer on the same day may be combined to meet the SAR 500 threshold.
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Riyadh (10 counters) – King Khalid International Airport
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Jeddah (4 counters) – King Abdulaziz International Airport
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Dammam (4 counters) – King Fahd International Airport
Before leaving Saudi Arabia, travellers must validate their refund forms at one of 18 verification points located across:
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Refunds are issued by card or cash, with a cash cap of SAR 5,000 per person per day. Cash refunds are not availableat the North Terminal of Jeddah’s airport.
Understanding Saudi Arabia’s VAT Regime
Saudi Arabia introduced its VAT regime in January 2018 at a rate of 5%. In July 2020, the government tripled the rate to 15% in response to pandemic-related fiscal pressures. The VAT system is administered by the Zakat, Tax and Customs Authority (ZATCA), and applies to most goods and services, including imports.
While the system is well-established for residents and businesses, this new tourist refund program marks a significant expansion—bringing the Kingdom in line with global VAT practices aimed at stimulating foreign spending.
