Saudi Gazette report

RIYADH — The Zakat, Tax and Customs Authority has made available to individuals and establishments the service of refunding the value-added tax (VAT) for the donations provided to implement public benefit projects.

The authority explained that the donor, who is eligible for refunding, is the one who sponsors or contributes to implement one or more public benefit projects, such as mosques, health centers, educational facilities, and other public benefit projects. This will be after taking into account the regulations issued regarding considering donors as persons eligible to refund the VAT.

The authority said that donors wishing to benefit from the service shall go through the regulations related to considering donors as persons eligible to refund the value-added tax and the tax bulletin designated for it, and check the user guide by visiting the authority's website. The guide explains the steps and procedures for registering donors as persons eligible to recover the value-added tax for public benefit projects.

The authority stated that the most prominent requirements for a refund of the VAT include submitting the approval of the competent authority for the public benefit project and a contract or agreement to implement the project unless the donor is a legal person who implements the project himself. It is also stipulated that the donor is not in a position to deduct the VAT he bears on implementing the project as an input tax or recover the tax as a person eligible for refund, such as a real estate developer or other persons eligible for refunding.

The Zakat, Tax and Customs Authority called on those interested to know more about it to contact it via the unified call center number (19993), or the "Ask Zakat, Tax and Customs" account on the (Zatca_Care@) X platform, or via email (info@zatca.gov.sa), or instant chats via the authority’s website.