Saudi Arabia has introduced a value-added tax (VAT) refund service for international visitors, a move aimed at encouraging higher tourist spending as KSA accelerates its economic diversification and hospitality growth plans.

Launched by the Zakat, Tax and Customs Authority (ZATCA), the initiative allows eligible visitors to reclaim VAT on purchases made during their stay, following recent amendments to the VAT Implementing Regulations.

Under the scheme, refunds can be processed at authorized service points located in major international airports, including King Khalid International Airport in Riyadh, King Abdulaziz International Airport in Jeddah, and King Fahd International Airport in Dammam. 

Tourists must meet specific eligibility requirements, including being over 18, a non-resident, and not part of any restricted lists, also ensuring purchases meet minimum spending thresholds of $133 (SAR 500), either in a single transaction or combined from up to three receipts on the same day from the same retailer.

Only goods purchased from VAT-registered stores and intended for personal use qualify, and items must remain unused and in original packaging until departure. Refunds are available either in cash, up to $1,332 (SAR 5,000)  per person per day or via credit card for higher amounts, with processing completed within three business days. 

Non-eligible items include services consumed in the Kingdom, vehicles, food and beverages, tobacco products, and oil derivatives.

To claim a refund, tourists must present a valid passport, original tax invoices, a completed VAT refund form, and proof of departure, such as a boarding pass. 

Retailers participating in the scheme are required to be certified, train staff on verification procedures, issue compliant invoices, and display signage indicating VAT refund availability.

Authorities advise visitors to shop only at certified outlets, carry purchases in hand luggage for customs inspection, and validate refund claims before leaving Saudi Arabia. These measures are intended to streamline the process and encourage more tourism spending in the Kingdom.