The Saudi VAT refund initiative: everything you need to know
These are the rules and regulations
If you’re currently visiting the Kingdom or are planning a visit, you need to know this. Normally, when you purchase goods and services in the Kingdom, you’re liable to pay a 15 per cent value-added tax (VAT). Tourists will now get a complete refund on it thanks to the Saudi VAT refund initiative.
First announced back in April, further details have just been revealed about the initiative. The VAT amount will be refunded to the tourists by the service provider at the time of their departure from the Kingdom.
Eligible visitors are now able to reclaim 15 per cent VAT on qualifying purchases through 1,442 authorised retail outlets across the Kingdom.
Details
According to Saudi Gazette, the VAT refund system is available to non-resident tourists aged 18 and older. To qualify, total purchases must exceed SAR500, and the goods must be unused, for personal use only, and exported within 90 days of purchase. Other key details include that services such as accommodation and meals will not be included, as well as specific items like vehicles, boats, aircraft, food, beverages, tobacco products, and petroleum derivatives.
Shoppers can request a VAT exemption form at the point of sale by presenting their passport or GCC ID and can combine up to three invoices from the same store on the same day to reach the eligibility criteria.
How it works
When leaving the country, travellers must verify their tax-free form at one of 18 points currently available at three international airports, including 10 at King Khalid International Airport in Riyadh, four at King Abdulaziz International Airport in Jeddah, and four at King Fahd International Airport in Dammam.
Refunds can be issued either through card or in cash, with a daily cash refund cap of SAR5,000 per person. However, it’s important to note that cash refunds are not available at the North Terminal of Jeddah’s King Abdulaziz Airport.
Visit: my.gov.sa
Images: Getty
