Saudi Arabia Introduces 15% VAT Refund for Tourists to Boost Tourism

• Saudi Arabia offers a 15 percent VAT refund for tourists on goods and services upon departure.
• The initiative started on 18 April after changes to VAT regulations by ZATCA.
• A zero percent VAT rate applies to qualifying purchases through approved providers.
• ZATCA will appoint authorized providers to manage the refund process.
• Tourists from GCC countries are treated the same as those from outside the GCC for VAT refunds.
• ZATCA’s governor will set detailed requirements for the refund system.
• Businesses must notify ZATCA of economic activity transfers within 30 days.
• Deregistered entities must keep all relevant documentation.
• The VAT refund initiative aligns with Saudi Arabia’s National Tourism Strategy.
• Saudi Arabia aims for 127 million visitors and SAR 346.6 billion in tourism spending by 2025.
• The Kingdom has introduced tourism-friendly measures, including a 2019 visa system.

Source: siasat.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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