Tourism is booming in Saudi Arabia, and there’s now an extra financial perk for travelers and tourists visiting the Kingdom. As part of its continued efforts to attract millions of international visitors, the Kingdom has launched a major new policy aimed directly at enhancing the tourist experience. Starting April 18, 2025, foreign tourists visiting Saudi Arabia are officially eligible to claim a refund on the 15% Value Added Tax (VAT) paid on certain goods and services during their stay. The VAT refund for tourists in Saudi Arabia is not just a welcome financial incentive, as it marks a strategic milestone in the country’s long-term economic transformation under Vision 2030.

The new policy, implemented by the Zakat, Tax and Customs Authority (ZATCA), reflects Saudi Arabia’s commitment to global tourism competitiveness. By introducing this tax refund system, the Kingdom is aligning itself with international best practices. Visitors and tourists can now enjoy shopping for souvenirs, electronics, luxury goods, or fashion items at ZATCA-approved retailers with a 15% rebate.

This guide breaks down everything you need to know about claiming a VAT refund in Saudi Arabia as a tourist.

Understanding the VAT Refund Policy

The VAT refund policy provides financial relief to international tourists, including those from the Gulf Cooperation Council (GCC) countries, who qualify as international visitors for VAT refund purposes.

Under this policy, tourists can receive a refund on the 15% VAT paid on eligible purchases with certain conditions met.

The Eligibility Criteria

To qualify for a VAT refund, tourists must:

• Be non-residents of Saudi Arabia.​
• Purchase goods and services from ZATCA-approved suppliers.​
• Ensure that the purchased items are intended for personal use and are exported from the Kingdom within a specified timeframe.​

It’s important to note that certain items, including food, fuel, and some personal items, are currently excluded.

The Refund Process

The VAT refund process is facilitated by authorized service providers appointed by ZATCA. These providers are responsible for verifying purchase receipts and processing refund claims. Tourists must present eligible receipts at designated refund points, typically located at airports, upon departure.

Both the tourist and the service provider share responsibility for ensuring the legitimacy of the refund and any violations may result in accountability.

Impact on the Saudi Tourism and Economy

Saudi Arabia is rapidly transforming its tourism landscape, and the VAT refund initiative is a major leap forward. Designed to attract more international visitors, the policy encourages higher spending by offering a financial reward at the end of their journey. 

The Kingdom has ushered in a new dynamic for travelers and tourists to shop, dine, and explore the breathtaking Saudi Arabia with eligibility for a 15 percent VAT refund on select goods and services.

This initiative directly supports Saudi Arabia’s National Tourism Strategy, which targets 127 million visitors and SAR 346.6 billion in tourism spending by 2025.

More importantly, it boosts key industries from retail, hospitality, transport, and entertainment by injecting fresh revenue into the local economy. When tourists spend more, local businesses grow, and job opportunities multiply as a direct result.

Moreover, the VAT refund system promotes Saudi Arabia as a competitive tax-free shopping destination, similar to global tourism hotspots. It reduces travel-related costs and encourages visitors to spend with confidence. 

Aligning with Vision 2030

Saudi Arabia’s Vision 2030 is the driving force behind its diversification strategy, and the new VAT refund policy fits perfectly into this vision.

By offering a refund on VAT paid by tourists, the Kingdom is sending a clear message: it’s open for business, open for travel, and open to the world.

The VAT refund supports several Vision 2030 goals, including increasing non-oil revenues, creating a vibrant society, and positioning the Kingdom as a global investment powerhouse. It encourages foreign spending, but more importantly, it reinvests spending into local communities and businesses. This approach strengthens private sector participation and brings Saudi Arabia closer to its ambition of becoming a top-tier tourism destination.

A New Era of Tourism in Saudi Arabia

Saudi Arabia has entered a new era redefined by accessibility, innovation, and visitor satisfaction. The VAT refund for tourists in Saudi Arabia is a symbol of the Kingdom’s global hospitality upgrade.

With this new policy in place, tourists enjoy a smoother, more rewarding experience. They can now claim their shopping tax refund quickly and easily through ZATCA-approved service providers at major departure points like airports. This level of service reflects the Kingdom’s broader efforts to become a tourist-first destination.

Moreover, this initiative positions Saudi Arabia alongside global tourism leaders that already offer tax rebate programs to travelers.

With this move, the Kingdom not only aligns with international standards but also adds its distinct touch that blends rich heritage, futuristic cities, and now, tourist-friendly tax policies. Whether you’re exploring traditional souks for handmade treasures or shopping in sleek, modern malls, you, as a tourist, now have even more reasons to enjoy spending in Saudi Arabia.

FAQs

Who can claim a VAT refund in Saudi Arabia as a tourist?
Only non-resident visitors to Saudi Arabia are eligible to claim a VAT refund. Until the Electronic Services System is implemented, all tourists from Gulf Cooperation Council (GCC) countries come under international visitors for VAT purposes.

To qualify, they must purchase goods or services from ZATCA-authorized retailers and take them out of the country within 90 days. Learn more about eligibility on the Zakat, Tax and Customs Authority’s official news.

What is the process for claiming a VAT refund in Saudi Arabia?
Just head to the designated VAT refund points available at major KSA airports before leaving the Kingdom. There, you will need to show:

• Your original purchase receipts
• Your passport
• The physical goods (if requested)
• Proof of travel (boarding pass)

The refund is processed by authorized third-party providers working with ZATCA, and can be paid back to your card or in cash, depending on location and provider. For a breakdown of how it works, check KSA Directory’s VAT Refund explainer.

Which purchases qualify for the VAT refund and which don’t?
Eligible items generally include clothing, electronics, souvenirs, and jewelry that are bought from registered retailers.

However, you won’t get a refund on:

• Food & beverages
• Hotel stays
• Fuel & transport
• Medical services
• Services consumed in the country

Also, make sure your retailer participates in the VAT refund scheme and look for the official VAT Refund signage. You can explore deeper into VAT rules via PwC’s Saudi Arabia tax summary.

Where are the VAT refund points located in Saudi Arabia?
VAT refund points are available at Saudi Arabia’s major international airports, including:

• King Khalid International Airport (Riyadh)
• King Abdulaziz International Airport (Jeddah)
• King Fahd International Airport (Dammam)

Refund counters are typically located after immigration but before the boarding gates. Stay updated on refund logistics and airport services through Visit Saudi’s official portal.

How does this new VAT refund policy tie into Saudi Arabia’s broader tourism strategy?
By giving visitors, a more value-rich shopping and cultural experience, Saudi Arabia is encouraging longer stays, higher spending, and stronger international ties. Learn how the VAT refund complements the broader national strategy via Welcome Saudi’s tourism insights.