Saudi Arabia has introduced a new VAT refund program for tourists, allowing them to reclaim 15% of the tax paid on eligible purchases. The initiative, launched by the Zakat, Tax and Customs Authority (ZATCA), took effect on April 18.

In the initial phase, the refund service is available at three international airports: King Khalid International Airport in Riyadh, King Abdulaziz International Airport in Jeddah, and King Fahd International Airport in Dammam, according to Khaleej Times. Global Blue, an authorized VAT refund provider, will manage the process.

Eligibility for claims

The program is open exclusively to non-Saudi tourists aged 18 and above. Permanent residents of Saudi Arabia and airline or ship crew members are not eligible. The scheme is limited to personal purchases and does not apply to commercial goods.

How to claim VAT refund

1.Shop at certified stores: Tourists should purchase items from shops certified by Global Blue. Before payment, they must show their passport or GCC ID to register the purchase and receive a ‘Tourist Tax Refund Invoice’.

Up to three invoices from the same store can be combined on the same day if the total exceeds SAR 500 (approximately AED 489). A digital QR code can also be scanned using the Global Blue app for faster processing.

2.Customs verification at the airport: Before departing Saudi Arabia, tourists must visit a Global Blue self-service kiosk at the airport to verify their refund request. For high-value items such as jewelry or watches, manual customs clearance may be required.

Tourists should keep these items in their carry-on luggage for inspection and ensure they have all original receipts, invoices, passports, and travel documents.

3.Refund method: Refunds can be received in cash or via credit card. Cash refunds are capped at SAR 5,000 per person per day. Any amounts exceeding this limit will be credited to the tourist’s card within three working days.

Eligible and ineligible purchases

Only personal goods purchased from certified stores are eligible for refunds. Items must be unused, in their original packaging, and carried in hand luggage when leaving the country. Refund claims must be made within 90 days of purchase.

Refunds are not available for hotel bills, food and drinks, vehicles, boats, aircraft, oil, gas, fuel products, or tobacco items.

Saudi authorities aim to attract more tourists and enhance shopping experiences in the Kingdom through this new scheme.