Saudi Arabia now giving back 15 per cent VAT to tourists

JEDDAH: Saudi Arabia has rolled out a new VAT refund scheme for tourists, allowing them to get back 15 per cent of the tax paid on eligible purchases.

The programme, launched by the Zakat, Tax and Customs Authority (ZATCA), came into effect on April 18.

In the first phase, the refund service is available at three international airports: Riyadh (King Khalid), Jeddah (King Abdulaziz), and Dammam (King Fahd), according to Khaleej Times.

Global Blue, an authorised VAT refund provider, is managing the process.

WHO CAN CLAIM?

Only non-Saudi tourists aged 18 or above can apply. Permanent residents of the Kingdom and airline or ship crew members are not eligible. The scheme applies only to personal purchases, not commercial goods.

Kotak Mahindra Bank denies viral claim of Rs1 septillion in customer account

HOW TO CLAIM VAT REFUND?

1. Shop at Certified Stores

Buy from shops certified by Global Blue. Show your passport or GCC ID before paying so your purchase is registered. You’ll receive a ‘Tourist Tax Refund Invoice’.

You can combine up to three invoices from the same store on the same day if your total shopping exceeds SAR500 (around AED489). You can also scan your digital QR code using the Global Blue app for quicker processing.

2. Customs Verification at the Airport

Before leaving Saudi Arabia, go to a Global Blue self-service kiosk at the airport to verify your refund request.

If you’ve bought expensive items like jewellery or watches, ZATCA may ask for manual customs clearance.

Make sure not to pack these items in checked luggage, as you may be asked to show them during inspection. Carry all original receipts, invoices, passport, and travel documents.

3. Refund Method

You can receive the refund in cash or by credit card. Cash refunds are limited to SAR5,000 per person per day. If your refund exceeds that, the amount will be sent to your credit or digital card within three working days.

WHAT CAN BE REFUNDED?

Only personal goods purchased from certified stores are eligible. Items must be unused, in original packaging, and in your carry-on luggage when you leave. Refunds must be claimed within 90 days of purchase.

WHAT’S NOT COVERED?

Refunds are not available on:

• Hotel bills, food, and drinks
• Vehicles, boats, or aircraft
• Oil, gas, and fuel products
• Tobacco or related items

Saudi authorities hope the refund scheme will attract more tourists and boost shopping in the Kingdom.