Get ready to feel your pockets jingle with money with 15% VAT refunds
Saudi Arabia has been on a tourism push recently in an effort to diversify the economy.
From multiple months-long events like Riyadh Season and Jeddah Season to becoming the destination for jaw-dropping sporting events, the Kingdom’s rushing towards fulfilling Saudi Vision 2030 at full steam.
Now, the Zakat, Tax and Customs Authority (ZATCA) has announced 15% VAT refunds (yes, really).
Want even more good news? All international visitors are eligible for service.
So, get ready to feel like particularly rich animated duck upon your return from Saudi Arabia. Here is everything to know about the new refund rules.
15% VAT refunds in Saudi Arabia 2025
Wondering what VAT actually mean? Value Added Tax is a consumption tax assessed on the value added in each production stage of a good or service.
Think of VAT like a tag-along guest at every stage of a product’s journey—quietly hopping from manufacturer to wholesaler to retailer. Each business gets a sort of backstage pass (a tax credit) to cancel out the VAT they paid earlier. But when the final product lands in your hands? The party’s over—no more passes. That’s when VAT shows up on your bill, making it a tax just for the end consumer.
Saudi Arabia first introduced VAT back in 2018 at 5%. It has since then increased to 15%.
As of April, ZATCA has updated the VAT rules—now certain goods and services provided by approved providers are taxed at 0%. In other words, if you’re eligible and working with the right folks, VAT won’t cost you a thing.
15% VAT refunds location
The VAT will be refunded on the visitor’s departure from the Kingdom. Where and how it will be done will be announced in the coming days.
15% VAT refunds dates
The refund was introduced on Friday, April by ZATCA.
15% VAT refunds eligibility
All international travelers—yep, including GCC tourists (for now)—can benefit from the VAT exemption. But hang tight: ZATCA will soon drop the full details on who counts as a “tourist,” which items are eligible, how much you need to spend, and how to actually claim your refund. Stay tuned.
Vision 2030 and Saudi
Vision 2030 has led to the Kingdom making some leaping strides and all major sectors. From consistently hosting big names in the entertainment industry like Kevin Hart in Jeddah in May to making moving around the capital easier with the colorful Riyadh Metro, the push has been making a visible impact. Speaking of Riyadh, the city of play Qiddiya City is gearing up for some awesome openings this year.
Fri Apr 18. Across Saudi, zatca.gov.sa.
