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Saudi Arabia Introduces VAT Refund Program to Boost Tourism and Shopping Experience

  • Saudi Arabia has launched a VAT refund program for tourists and GCC nationals.
  • Eligible visitors can reclaim 15 percent VAT on qualifying purchases.
  • The program is available at 1,442 authorized retail outlets across the Kingdom.
  • Non-resident tourists aged 18 and older can use the VAT refund system.
  • Purchases must exceed SR500 and be unused, for personal use, and exported within 90 days.
  • Services like accommodation and meals, and items like vehicles and tobacco, are excluded.
  • Shoppers need to present a passport or GCC ID for a VAT exemption form.
  • Up to three invoices from the same retailer can be combined to meet the eligibility threshold.
  • Tax-free forms must be validated at one of 18 verification points at three international airports.
  • Refunds can be issued by card or in cash, with a daily cash refund cap of SR5,000 per person.
  • Cash refunds are not available at the North Terminal of Jeddah’s King Abdulaziz Airport.
  • The initiative aims to enhance tourism, streamline shopping, and encourage longer stays.

Source: zawya.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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