Tourists to get refund on VAT paid in KSA soon

JEDDAH: The General Authority of Zakat and Tax (GAZT) announced on Dec. 24 that they are working on a mechanism to return the value-added tax (VAT) to tourists, but it will not be applied in the early months of 2018 as the process are yet to be established.

Hamoud Al-Harbi, director of the VAT operations center at GAZT, told Arab News: “According to executive regulations, it is possible for companies to return the VAT to tourists on products they are taking to their countries.”

He added: “The mechanism will be decided later as we are still working on the process, mechanisms, rules and payment. Some



countries, for example, specify what amount to return; if it is less than €100 (SR445) it won’t be returned.”

He also said in a statement that the implementation of tax-free system for tourist purchases included in the VAT will not be applied in early January.

He pointed out that the executive regulation of VAT approved that the tax will be returned to tourists coming to Saudi Arabia if they paid the VAT on products that are on the list for the VAT.

Expat tourists who live in Gulf Cooperation Council (GCC) countries will not be included under the system of the returned VAT.