Saudi Arabia’s VAT Refund for Tourists and GCC Nationals: Full Guide for Retailers, Investors, and International Shoppers

Saudi Arabia’s new VAT refund scheme for tourists and GCC nationals, allowing eligible shoppers to reclaim 15 percent VAT on purchases over SAR 500 (US$133). The move supports the Kingdom’s Vision 2030 goals by boosting tourism and retail spending.

In a move aligned with its Vision 2030 agenda to diversify the economy and attract global visitors, Saudi Arabia officially launched a value-added tax (VAT) refund program for tourists and GCC nationals in April 2025.

The initiative allows eligible travelers to reclaim the 15 percent VAT on qualifying purchases made at registered retail outlets across the Kingdom. By easing the cost burden on non-resident shoppers, Saudi Arabia joins other Gulf countries—such as the United Arab Emirates and Bahrain—in positioning itself as a more competitive destination for tourism and retail investment.

This article explains how the scheme works, who is eligible, what purchases qualify, and what this development means for tourists, retailers, and investors.

Saudi Arbia’s VAT refund eligibility and scope

Saudi Arabia’s VAT refund scheme is carefully structured to benefit genuine tourists and non-resident visitors while maintaining fiscal oversight and regulatory clarity. Below is a breakdown of who qualifies and which purchases are eligible for the refund.

Who can claim a VAT refund in Saudi Arabia?

The scheme is open to the following categories of travelers:

• Non-resident tourists aged 18 and above, holding a valid passport; and
• GCC nationals (from Bahrain, Kuwait, Oman, Qatar, and the UAE) who present a passport or valid GCC ID and are treated as non-residents for VAT refund purposes.

Importantly, travelers must exit the Kingdom within 90 days of the purchase date and validate their refund claim before departure.

What purchases qualify?

To be eligible for a VAT refund, purchases must meet specific criteria:

• Minimum spend: Shoppers must spend at least SAR 500 (US$133) in one transaction or accumulate this amount through up to three receipts from the same store on the same day.
• Type of goods: Only physical goods that are unused and intended strictly for personal use can be claimed under the scheme.
• Export requirement: Goods must be exported within 90 days of purchase to qualify.

What is not eligible?

Certain categories of goods and services are explicitly excluded from the VAT refund program. These include:

• Services such as hotel accommodations, dining, and hospitality-related expenses;
• Large-ticket items like vehicles and boats; and
• Consumables including food and beverages, tobacco, and fuel.

These exclusions align with the standard international practice of limiting VAT refunds to exported retail goods and preventing abuse of the system for local consumption.

How Saudi Arabia’s VAT refund works

Saudi Arabia’s VAT refund mechanism for tourists and GCC nationals is designed to be simple, accessible, and efficient. The process is divided into three main stages: in-store shopping, departure verification at the airport, and refund issuance.

Below we offer a step-by-step breakdown of how eligible visitors can claim their VAT refunds.

1. Shopping stage (in-store)

To begin the VAT refund process, tourists must shop at ZATCA-approved retail outlets. These are stores authorized by the Zakat, Tax and Customs Authority (ZATCA) to participate in the refund scheme. Eligible outlets are typically marked with “Tax Free” or “VAT Refund Available” signage.

Notably, not all stores are enrolled in the program. Tourists are advised to confirm eligibility with store staff or use digital tools such as the Global Blue Store Locator.

Once ensured they are in the store participates in the VAT refund process, the minimum spending requirements mandate shoppers to:

• Spend at least SAR 500 (US$133) in a single transaction; or
• Accumulate the amount through up to three receipts from the same store on the same day.

At the point of sale, tourists must present a valid passport or GCC ID to request the VAT refund form.

2. Departure verification (airport)

Once purchases are completed, travelers must validate their VAT refund claim prior to leaving the country. This step takes place at designated airport kiosks located across Saudi Arabia’s major international airports:

• Riyadh – King Khalid International Airport: 10 refund points;
• Jeddah – King Abdulaziz International Airport: 4 refund points; and
• Dammam – King Fahd International Airport: 4 refund points.

Arrived at these kiosks, travelers must:

• Present their VAT refund forms and purchased goods, which must be unused and for personal use only;
• Ensure goods are being exported within 90 days of purchase, in line with ZATCA rules; and
• Complete any required identity verification and allow kiosk staff to inspect receipts and goods if requested.

3. Refund issuance

After successful validation at the airport, tourists can proceed to receive their VAT refund via one of two methods:

• Cash Refund: Available up to SAR 5,000 (US$1,324.65) per day; or
• Card Refund: Refunded directly to the tourist’s payment card.

Importantly, as reported by Gulf Business, cash refunds are not available at the North Terminal of Jeddah’s King Abdulaziz International Airport. Travelers departing from that terminal should opt for card refunds.

Background and regulatory context

Saudi Arabia’s new VAT refund program aligns with the Kingdom’s efforts to diversify its economy, stimulate private sector growth, and elevate the role of tourism as a key contributor to GDP. Saudi Arabia aims to raise tourism’s contribution from around 6 percent to 10 percent of GDP by 2030, while targeting 150 million annual tourist visits through a combination of domestic and international arrivals.

The VAT refund scheme is seen as instrumental in meeting these goals by making shopping in the Kingdom more attractive to visitors, particularly those from nearby Gulf countries and international markets seeking luxury retail experiences.

From a regulatory standpoint, the initiative is backed by formal amendments to the VAT Implementing Regulations, which took effect on April 18, 2025. These revisions were introduced by the ZATCA following a period of public consultation conducted through Saudi Arabia’s Istitlaa platform, which invites feedback from stakeholders on proposed legal and policy changes. The updated framework legally codifies the eligibility, scope, process, and exclusions of the VAT refund system, providing clarity for both tourists and retailers.

This shift also signals Saudi Arabia’s broader transition toward a more service-oriented, rules-based economy that actively responds to global consumer and business expectations.

Strategic implications

For tourists

The VAT refund program significantly enhances the value proposition of visiting Saudi Arabia by offering international travelers tangible savings on purchases made within the Kingdom. The ability to reclaim 15 percent of VAT makes high-value transactions, such as luxury goods, fashion, electronics, and cultural souvenirs, substantially more attractive.

Beyond savings, the refund mechanism is expected to encourage longer stays and increased discretionary spending, aligning with government goals to not only attract more tourists but also boost their per-capita contribution to the economy. The clear refund process and growing network of authorized retailers improve convenience and transparency for travelers, increasing their confidence in choosing Saudi Arabia as a destination.

For retailers and service providers

For businesses operating in the Saudi retail ecosystem, the scheme represents both an opportunity and an operational requirement. In practical terms, retailers seeking to participate in the program must:

• Register with ZATCA as authorized VAT refund outlets;
• Train staff to understand refund procedures and engage tourists at the point of sale;
• Upgrade point-of-sale (POS) systems to generate compliant invoices and interface with refund systems; and
• Maintain clear documentation and timely filings to facilitate refunds and avoid compliance risks.

Participation offers a clear commercial incentive: retailers that adopt the system can attract a larger share of tourist spending and signal alignment with international standards. For international brands evaluating market entry, the refund scheme further positions Saudi Arabia as a viable and competitive destination, particularly within the high-end retail segment.

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