Saudi Arabia to launch VAT refund system for tourists

This initiative aims to promote tourism and shopping.

In an effort to boost tourism, the Kingdom of Saudi Arabia (KSA) will launch a value-added tax (VAT) refund system for tourists In 2025.

The Saudi Zakat, Tax and Customs Authority will oversee the implementation of a system aimed at simplifying tax compliance, Arabic daily Sabq reported.

The initiative aligns with the National Tourism Strategy, aiming for 127 million visitors and 346.6 billion Saudi Arabian Riyals in tourism spending by 2025.

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The VAT refund system in Saudi Arabia aims to boost tourism and enhance the shopping experience for foreign tourists by allowing them to claim VAT refunds on goods purchased during their visits.

This decision aligns with Kingdom’s strategic economic diversification and robust tax governance, enhancing its global competitiveness in tourism and investment.

In recent years, Saudi Arabia has added a number of amenities in an effort to draw in more foreign visitors. Among these is the system that was introduced in 2019 that allows individuals of various nationalities to obtain tourist visas upon arrival or online.