Saudi Arabia’s General Authority of Zakat & Tax (GAZT) has announced they ar working on a system that will return or refund VAT (Value added tax) to Saudi Tourists including Hajj & Umrah.
As per the GAZT tax wouldn’t be levied on the products bought in Saudi and will b taken to other countries.
All the taxes paid by the Tourists during their visit to Saudi Arabia will be refunded.
VAT Refund for Tourists
This system of refund or returning Tax back to tourist will be decided later as they are still working on several systems, process, rules, regulations and payments.
Expat tourists who live in Gulf Cooperation Council (GCC) countries will not be included under the system of the returned VAT.
Tourists coming to the Kingdom will submit an application to have their VAT returned during their stay in the Kingdom.
Those who will apply for this service will be required provide proof of VAT payment and products they paid for before getting approval for the tax they paid to be returned.
The VAT is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions.
Saudi Arabia is committed to impose VAT with effect from Jan. 1, 2018. VAT will be introduced at a standard rate of 5 percent.
