Saudi Gazette report

JEDDAH — Saudi Arabia has officially begun implementing its value-added tax (VAT) refund program for tourists and Gulf Cooperation Council (GCC) nationals, enabling eligible visitors to reclaim 15% VAT on qualifying purchases through 1,442 authorized retail outlets across the Kingdom, Saudi Gazette has learned.

The move is part of the Kingdom’s broader efforts to enhance the tourism and shopping experience, increase Saudi Arabia’s appeal as a global destination.

The VAT refund system is available to non-resident tourists aged 18 and older.

To qualify, total purchases must exceed SR500, and the goods must be unused, for personal use only, and exported within 90 days of purchase.

Services such as accommodation and meals are excluded, as well as specific items like vehicles, boats, aircraft, food and beverages, tobacco products, and petroleum derivatives.

Shoppers can request a VAT exemption form at the point of sale by presenting their passport or GCC ID, and may combine up to three invoices from the same retailer on the same day to reach the eligibility threshold.

Upon departure, travelers must validate their tax-free form at one of 18 verification points currently available at three international airports: 10 at King Khalid International Airport in Riyadh, four at King Abdulaziz International Airport in Jeddah, and four at King Fahd International Airport in Dammam.

Refunds can be issued either by card or in cash, with a daily cash refund cap of SR5,000 per person. However, cash refunds are not available at the North Terminal of Jeddah’s King Abdulaziz Airport.

The VAT refund initiative aims to promote sustainable tourism spending, streamline shopping experiences, and encourage visitors to extend their stays and explore more of Saudi Arabia’s retail landscape.