April 21, 2025 - Saudi Arabia has announced that visitors to the Kingdom will now be eligible for a Value Added Tax (VAT) refund upon their departure from the country. This initiative, which came into effect on April 18, 2025, is a significant step by the authorities to attract global travellers and encourage spending by tourists.

As per this new policy, the Zakat, Tax and Customs Authority (ZATCA) has made changes to the VAT rules to allow for refund of 15% VAT for visitors who purchase goods and services from approved suppliers.

While the buyer will be expected to pay the VAT upfront at the time of purchase, the refund will be given later and is expected to be available at certain exit points, like border crossings and airports, once the policy is streamlined. Service providers will be designated and authorised to process the refunds when the visitor is exiting the country.

Future ZATCA guidelines will provide precise requirements for qualified products, minimum purchasing amounts and the application processes. ZATCA governor has been authorised to issue guidelines for the refund scheme implementation.

With Media Reports