Home » Saudi Arabia Introduces VAT Refund System for Tourists in 2025

Saudi Arabia Introduces VAT Refund System for Tourists in 2025

by bilal

Saudi Arabia has rolled out a new VAT refund program starting from April 18, 2025. Now, tourists visiting the Kingdom can claim back 15% VAT on certain goods and services when leaving the country.

This move is part of Saudi Arabia’s plan to attract more international visitors while making shopping and traveling more affordable. The initiative supports the country’s larger Vision 2030 goal of growing its tourism industry alongside major projects like NEOM, the Red Sea resorts, and the Holy Cities.

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How the VAT Refund Works

When tourists shop in Saudi Arabia, they’ll pay the regular 15% VAT at the time of purchase. But before heading home, visitors can apply to get that tax refunded.

To do that, travelers must keep receipts from approved stores. At the airport or exit point, they’ll show those receipts to authorized agents who handle the refund process. Once verified, the refund is given either in cash or digitally, depending on the service provider.

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Who Can Get the Refund

The VAT refund is available to all tourists visiting Saudi Arabia, including those from neighboring GCC countries. For now, GCC citizens are treated the same as international tourists under this program, though this may change with new rules later.

The system is designed to make things easy:

  • Only approved shops will offer VAT refund-eligible items.
  • A minimum purchase amount might be required to claim VAT back.
  • Not all products may qualify — a clear list of eligible goods and services is expected from the tax authority.

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Who Manages the System

The Zakat, Tax, and Customs Authority (ZATCA) oversees the entire VAT refund program. They’re working with licensed companies and service agents who:

  • Check tourist receipts.
  • Handle refund payments.
  • Make sure everyone follows the official rules.

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Visa Fees and Existing Costs

Along with this new refund system, tourists still pay visa fees when entering Saudi Arabia. The e-visa currently costs SAR 300, which also includes health insurance.

While visa fees remain, the VAT refund helps balance the overall cost of traveling to Saudi Arabia, especially for shopping and leisure trips.

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Why This Matters

Saudi Arabia’s focus isn’t on adding more visitor taxes but rather on offering more services that encourage people to visit. The VAT refund program makes the Kingdom more tourist-friendly and competitive with other shopping destinations in the region.

From luxury malls in Riyadh to the local shops in Jeddah, this new policy could make a real difference for visitors who want to shop and save.

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