Saudi Arabia implements 15% VAT refund program for tourists, GCC nationals across 1,442 retail outlets

SAUDI ARABIA – Saudi Arabia has officially commenced the implementation of its value-added tax (VAT) refund scheme, enabling eligible tourists and Gulf Cooperation Council (GCC) nationals to reclaim 15% VAT on qualifying purchases at 1,442 authorized retail outlets nationwide, Saudi Gazette has reported.

This initiative forms part of Saudi Arabia’s broader efforts to enhance the shopping and tourism experience, aiming to bolster the Kingdom’s appeal as a premier global destination.

The VAT refund system caters to non-resident tourists aged 18 and older.

To qualify for the refund, the total value of purchases must exceed SAR 500  (US$133), with the requirement that goods remain unused, intended solely for personal use, and exported within 90 days from the date of purchase.

Importantly, certain items are excluded, such as vehicles, boats, aircraft, tobacco products, petroleum derivatives, food, beverages, accommodation, and meals.

Shoppers can obtain a VAT exemption form at the point of sale by presenting either their passport or GCC ID card.

The program also permits combining up to three invoices from the same retailer on the same day to meet the minimum purchase threshold of SAR 500 (US$133).

At the time of departure from Saudi Arabia, travelers must validate their tax-free forms at one of 18 verification points currently available across three international airports: ten kiosks at King Khalid International Airport in Riyadh, four at King Abdulaziz International Airport in Jeddah, and four at King Fahd International Airport in Dammam.

This step is essential to process the VAT refunds correctly.

Refunds can be disbursed either via payment cards or in cash, with a daily cash refund limit capped at SAR 5,000 per person.

However, it is notable that cash refunds are not available at the North Terminal of King Abdulaziz International Airport in Jeddah.

This VAT refund program aims to stimulate sustainable growth in tourism-related spending, improve the overall shopping journey for visitors, and encourage longer stays within the Kingdom.

By aligning with international standards of tourist tax refunds, Saudi Arabia continues to reinforce its position as a competitive and attractive destination for global travelers.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.