The new amendments to the implementing regulations of the Kingdom's value-added tax (VAT) law have come into effect, allowing tourists to reclaim the tax paid on their purchases of eligible goods when they leave Saudi Arabia, in a move aimed at improving the visitor experience and boosting the competitiveness of local markets.
The amendments are based on Resolution No. "24-06-01" issued by the Board of Directors of the Zakat, Tax and Customs Authority on November 19, 2024, and published in the official gazette "Umm Al-Qura". The resolution took effect in April 2025 and includes detailed rules on the tax refund mechanism for tourists and defines the responsibilities of accredited service providers, according to a post on the website of the Saudi Zakat Authority.
Who Is Eligible
The Zakat, Tax and Customs Authority explained that the system allows tax refunds for every visitor who is not a resident of the Kingdom or of any Gulf Cooperation Council (GCC) country. It also temporarily covers tourists coming from GCC countries until a unified electronic system is implemented among the Gulf states.
Purchases must be for personal use only and made from accredited suppliers, and the goods must be carried by the tourist when leaving the Kingdom.
Goods Not Eligible for Refunds
The refund does not cover certain goods, most notably:
Vehicles, boats and aircraft.
Tobacco products, their derivatives and substitutes.
Food and beverages.
Oil, gas and their derivatives.
Goods that have been used or consumed inside the Kingdom.
Steps to Claim a Refund
Keep the original tax invoice issued by an accredited store or supplier.
Submit the refund request through one of the accredited service providers while the tourist is still in the Kingdom.
The service provider reviews the request and verifies that the regulatory conditions are met before submitting it to the authority.
After the authority approves it, the amount due is paid to the tourist by the method of their choice: transfer, card or cash.
Services provided as part of the refund process are subject to a 0% tax rate, to make the procedures easier for visitors.
Regulatory Controls
The regulations stipulate that the service provider and the tourist are jointly liable for any amounts refunded in violation of the law's provisions.
The authority also authorized its governor to issue a subsequent implementation guide setting out the minimum value of eligible purchases, supplier requirements and the mechanism for submitting applications electronically.
The move is part of the Kingdom's efforts to improve the tourist shopping experience and increase the appeal of local destinations to visitors, in line with the goals of Saudi Vision 2030 to boost inbound tourism and diversify non-oil sources of income.
To view the post on the website of the Saudi Zakat, Tax and Customs Authority, click here.
