Saudi Arabia has launched a VAT refund programme for international tourists and GCC citizens.
Tourists can reclaim 15% VAT on purchases over SAR 500 at 1,440 authorised stores, and eligible goods must be unused and exported within 90 days.
The refunds can be processed via cash or card at kiosks in Riyadh, Jeddah, and Dammam airports.
Launching VAT Refund Programme
Saudi Arabia has recently unveiled an exciting initiative aimed at enhancing its appeal as a premier shopping destination: the Value Added Tax (VAT) refund programme.
This innovative scheme allows international tourists and citizens of the Gulf Cooperation Council (GCC) to reclaim 15% of the VAT on qualifying purchases made at authorized retail outlets across the Kingdom.
With over 1,440 participating stores, this initiative is poised to significantly boost retail tourism and align with the Kingdom’s broader Vision 2030 objectives.
Understanding VAT Refund Programme
The VAT refund programme is designed to provide a financial incentive for non-resident tourists and GCC nationals, making shopping in Saudi Arabia even more attractive.
By allowing eligible visitors to reclaim a portion of the tax on their purchases, the Kingdom aims to encourage more international travelers to explore its vibrant retail landscape.
Eligibility Criteria for VAT Refund
To qualify for the VAT refund, shoppers must meet specific criteria:
- Age Requirement: Participants must be at least 18 years old.
- Minimum Purchase Amount: Total purchases at a participating outlet must exceed SAR 500 (approximately USD 133).
- Goods for Personal Use: The items purchased must be for personal use and remain unused.
- Export Timeline: Goods must be exported from Saudi Arabia within 90 days of purchase.
Exclusions from the VAT Programme
While many products are eligible for VAT refunds, certain items and services are excluded from the scheme. These include:
- Services: Accommodation and meals are not eligible for refunds.
- Specific Goods: Vehicles, boats, aircraft, tobacco, fuel, and food and beverages do not qualify for the VAT refund.
How the VAT Refund Process Works
Claiming a VAT refund in Saudi Arabia is a straightforward process designed to enhance the shopping experience for tourists. Here’s a step-by-step guide on how to navigate the refund process:
Step 1: Requesting the Tax Exemption Form
At the time of purchase, shoppers should present their passport or GCC national ID to request a tax-exemption form. This form is essential for claiming the VAT refund later.
Step 2: Combining Receipts
To meet the minimum purchase threshold of SAR 500, tourists can combine up to three receipts from the same store on the same day. This flexibility allows shoppers to maximize their refund potential without the hassle of keeping track of multiple transactions.
Step 3: Verification at Airports
Before departing Saudi Arabia, travelers must validate their tax-exemption forms at one of the designated verification kiosks located at major international airports:
- King Khalid International Airport (Riyadh): 10 kiosks
- King Abdulaziz International Airport (Jeddah): 4 kiosks
- King Fahd International Airport (Dammam): 4 kiosks
Step 4: Receiving the Refund
Refunds can be processed in two ways:
- Cash Refunds: Up to SAR 5,000 (approximately USD 1,333) can be refunded in cash per person per day. However, cash refunds are not available at Jeddah’s North Terminal.
- Card Refunds: Alternatively, refunds can be credited directly to a payment card.
The Impact of the VAT Refund Programme
The introduction of the VAT refund programme is expected to have a profound impact on Saudi Arabia’s retail tourism sector. By providing a financial incentive for international visitors, the Kingdom aims to attract a larger number of tourists and encourage them to spend more during their stay.
The Retail Landscape in Saudi Arabia
Saudi Arabia’s retail environment has undergone a significant transformation in recent years. The Kingdom is home to a growing number of international and local retail brands, with new shopping malls and luxury boutiques emerging in cities like Riyadh, Jeddah, and Dammam.
Positioning Saudi Arabia as a Global Retail Hub
The launch of the VAT refund programme marks a significant milestone in Saudi Arabia’s efforts to enhance its retail tourism sector.
By allowing international tourists and GCC nationals to reclaim 15% VAT on qualifying purchases, the Kingdom is not only boosting its appeal as a shopping destination but also aligning with its broader economic diversification goals.
Exciting Tourist Attractions in Saudi Arabia
The Point in Abha
The Aseer Development Authority has awarded a 1 billion SAR contract for “The Point,” a new tourist destination in Abha.
Announced at Cityscape Global 2024, it will open in late 2027, just 14 minutes from Abha International Airport.
Covering 75,000 square meters, it will feature luxury hotels like Hilton Hotel Apartments and Canopy by Hilton, along with high-end restaurants and cafes.
PIF’s ARDARA in Abha
The PIF has launched ‘Ardara,’ an exciting new company with the AlWadi Project in Abha as its first development.
AlWadi Abha is due to be a new Highland tourist destination in the Aseer Region, covering a huge area of 2.5 million square meters, including 16km of waterfront, 17km of sports trials, and 30% green spaces.
The Avenues Riyadh
The highly anticipated Avenues Riyadh project, valued at $4.58 billion, has reached 44.5% completion and is scheduled to open in early 2026.
Situated in northern Riyadh, this iconic development, inspired by Salmani architecture, will cover 390,000 square meters and host one of the Middle East’s largest malls.
It will also feature three luxury hotel towers: Waldorf Astoria, Canopy by Hilton, and Conrad. This project supports Saudi Vision 2030’s goal of making Saudi Arabia a leading global tourist destination.
The Qiddiya City Project
The development of Qiddiya City, a project aimed at creating a Global Entertainment and Sports Hub in the Kingdom, has been awarded contracts worth more than $2.6 billion.
The Qiddiya city, located on the outskirts of Riyadh, is expected to have 60,000 buildings, including golf courses, stadiums, and the Six Flags Qiddiya Theme Park.
Its goal is to attract 40 million tourists annually and contribute $36 billion to the GDP. The city aims to have approximately 48 million visitors per year, with a gaming and e-sports district that will serve as a global competition hub.
Jeddah Central Destination
The new Jeddah Central Destination, aimed towards elevating Jeddah into a global tourist hotspot, has moved closer to realization. The Jeddah Central Development Company has recently awarded $3.2 billion in contracts for the inaugural development phase.
Spanning an expansive 5.7 million square kilometers, this iconic destination is poised to showcase a world-class stadium, an oceanarium, beach resorts, 2,700 hotel rooms, shopping malls, restaurants, and 17,000 housing units.
Riyadh Sports Boulevard
The Riyadh Sports Boulevard has been designed to be the longest linear park in the world, with the purpose of connecting the Wadi Hanifa in the western part of Riyadh to the Wadi Al Sulai in the eastern part of the city, spanning a total distance of 135km.
This project aims to transform Riyadh into one of the world’s most livable and healthy cities. The development plans include various pathways, bike lanes, and horse riding trails, covering a vast area of 4.4 million square meters of green spaces.
The impressive initiative will also consist of 8 exceptional districts, such as an athletics district, an entertainment district, and an arts district.
Keep Reading: Saudi Arabia Awards $266.6 Million Construction Contract for The Point Project in Abha
