Saudi Arabia launches VAT refund scheme for tourists and GCC nationals

Saudi Arabia has officially rolled out its value-added tax (VAT) refund programme for tourists and GCC nationals, allowing eligible visitors to reclaim 15% VAT on qualifying purchases.

The system is now operational at over 1,440 authorised retail outlets across the Kingdom, part of efforts to boost tourism and position Saudi Arabia as a top global shopping destination.

Who can claim a VAT refund?

The VAT refund applies to non-resident tourists aged 18 and above, as long as their total spending at a store exceeds SAR 500. Items must be for personal use, unused, and exported within 90 days of purchase.

The scheme does not cover services like hotel stays or meals, or products such as vehicles, boats, tobacco, fuel, or food and beverages.

How it works

At the point of purchase, shoppers can request a tax-exemption form by presenting a passport or GCC ID. Tourists may combine up to three receipts from the same store, on the same day, to meet the minimum amount.

To complete the process, travellers must verify their forms at one of 18 dedicated kiosks across three international airports:

• 10 points at King Khalid International Airport (Riyadh)

• 4 points at King Abdulaziz International Airport (Jeddah)

• 4 points at King Fahd International Airport (Dammam)

Refunds are issued either in cash (up to SAR 5,000 per day) or to a payment card. Note: cash refunds are not available at Jeddah’s North Terminal.

Why this matters

The new refund scheme is expected to stimulate tourism-linked spending, lengthen tourist stays, and reinforce Saudi Arabia’s appeal as a shopping hub in the region.