Saudi Arabia now gives tourists 15 pc VAT refund

In a move to boost tourism, Saudi Arabia has announced that the 15 percent value-added tax (VAT) paid by tourists on goods and services during their stay will be refunded upon departure.

The initiative came into effect on Friday, 18 April, following amendments to the VAT regulations by the



Zakat, Tax and Customs Authority (ZATCA).

Under the updated framework, a zero percent VAT rate will apply to qualifying purchases made by tourists through approved service providers. ZATCA will appoint one or more authorised providers to manage the VAT refund process, the Saudi Gazette reported.