Owais Crawford
Saudi Arabia charges a 5% value-added tax (VAT) on domestic air travel fees and related services. Non-residents can claim a refund on the VAT they have paid at Jeddah, Riyadh, or any other airport in the country. The minimum amount of VAT for which a claim may be submitted is SAR 1,000 or SR 1,000. To claim a VAT refund, non-residents must submit a form, provide an invoice, and show the item bought at the VAT Refund counter at the airport. The refund will be paid into the claimant's bank account within 60 days of the claim being approved.
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What You'll Learn
- Non-residents can claim VAT refunds at Saudi airports
- Eligible persons must not carry out economic activities in KSA
- VAT refund applications must be submitted before 30 June 2023 for VAT incurred in 2022
- Non-residents must be registered for tax in their country and allow reciprocal tax refunds for Saudi residents
- The minimum VAT refund amount is SAR 1,000 or SR 1,000
Non-residents can claim VAT refunds at Saudi airports
To be considered an 'eligible person' for VAT refund, non-residents must meet specific criteria. They must be established in a country with a similar transactional tax system to Saudi Arabia and be registered with the competent tax authority for that tax system. Additionally, the non-resident's country must allow a reciprocal mechanism for refunding tax to Saudi entities charged in their country.
The process for claiming a VAT refund at Saudi airports involves submitting an application along with supporting documents. Non-residents must provide their name and the name of the supplier, and they should ensure that the goods are not used and are being taken outside of Saudi Arabia. The minimum amount of VAT for a claim is SAR 1,000 or SR 1,000. The application can be submitted manually or through the ZATCA portal, and the refund will be made to the designated bank account within 60 days of approval.
It is important to note that VAT incurred on specific goods and services, such as those mentioned under Article 50 of the VAT Implementing Regulations, may not be eligible for a refund. These include entertainment and other non-business-related expenses. The VAT refund procedures for non-residents can be complex, and it is recommended to seek expert assistance to navigate the regulations and ensure compliance.
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Eligible persons must not carry out economic activities in KSA
In Saudi Arabia, eligible persons who do not carry out economic activities in the Kingdom of Saudi Arabia (KSA) can apply for a VAT refund. This includes non-resident persons or companies who do not carry out economic activities in KSA and meet the following conditions:
- The non-resident person or company is established in a country with a transactional tax system similar to the KSA VAT system.
- The non-resident person or company is registered with the competent tax authority for the purposes of that similar tax system.
- The country of the non-resident person or company allows a similar mechanism to provide tax refunds to KSA entities charged tax in that country.
Designated persons such as foreign governments, international organizations, diplomatic and consular bodies, and missions who do not carry out economic activities in KSA are also considered eligible persons for VAT refunds.
The process for submitting a VAT refund application as an eligible person may vary. Non-resident persons can file a refund application within six months from the end of a calendar year, with a minimum VAT claim amount of SAR 1,000. The application must include detailed tax invoices and proof of tax payment. Applicants must ensure that all tax invoices related to the refund request contain detailed information about the supplier, the date of the invoice, and a comprehensive description of the goods or services.
It is important to note that VAT incurred on certain goods and services may not be refunded, and there may be specific requirements for the goods to be eligible for a refund. For example, tourists claiming a VAT refund at Saudi airports must ensure that the goods are not used and are being taken outside of Saudi Arabia.
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VAT refund applications must be submitted before 30 June 2023 for VAT incurred in 2022
In Saudi Arabia, eligible persons who do not carry out economic activities in the country and have incurred VAT during the 2022 calendar year are allowed to apply for a VAT refund by 30 June 2023. This includes non-resident companies or individuals, such as tourists, that meet specific criteria.
To be eligible for a VAT refund, non-resident persons or companies must be established in a country with a transactional tax system similar to Saudi Arabia's VAT system. They must also be registered with the competent tax authority in their country for the purposes of that similar tax system. Additionally, the country of the non-resident person or company must allow a similar mechanism to provide tax refunds to Saudi Arabian entities charged tax in that country.
Designated persons or entities, such as foreign governments, international organizations, and diplomatic bodies, who do not carry out economic activities in Saudi Arabia may also be considered eligible for VAT refunds.
The process for claiming a VAT refund in Saudi Arabia typically involves submitting an application along with supporting documents. This can be done manually or electronically through the ZATCA portal or designated email address. Tourists can also claim VAT refunds at VAT Refund counters at Jeddah, Riyadh, and other international airports in Saudi Arabia.
It is important to note that there may be minimum amounts of VAT required for a claim, and certain goods and services may be excluded from VAT refunds. The deadline for submitting VAT refund applications for VAT incurred in 2022 is 30 June 2023, and approved refunds will be paid within 60 days from the issuance of the approval notification.
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Non-residents must be registered for tax in their country and allow reciprocal tax refunds for Saudi residents
Non-residents can claim a refund of the VAT paid in Saudi Arabia at Jeddah, Riyadh, or any other international airport. To be eligible for a VAT refund, non-residents must be registered for tax in their country of residence and allow reciprocal tax refunds for Saudi residents.
The Kingdom of Saudi Arabia (KSA) introduced Value Added Tax (VAT) legislation in 2018, and non-residents can now request a VAT refund from the Zakat, Tax and Customs Authority (ZATCA). ZATCA has issued guidelines for VAT refunds for non-resident businesses and individuals. The guidelines outline the conditions that must be met for non-residents to claim VAT refunds.
The first condition is that the non-resident must be established in a country with a transactional tax system similar to the KSA VAT system or allow for reciprocal VAT refunds to Saudi residents. The second condition is that the non-resident must be registered with the competent tax authority in their country and provide evidence of VAT registration or an equivalent tax regime. This includes a valid registration certificate and may require additional documentation to verify the registration's ongoing validity.
The third condition is that the country of the non-resident must permit VAT refunds under similar circumstances to KSA residents, known as the principle of reciprocity. It is important to note that the minimum amount of VAT for which a claim may be submitted is SAR 1,000 or SR 1,000.
To claim a VAT refund at a Saudi airport, non-residents must submit a refund application, providing their name, the name of the supplier, and the goods purchased. The application must be submitted within six months of the end of the calendar year in which the VAT was incurred. Once the application is approved, the refund will be paid into the designated bank account of the eligible person within 60 days.
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The minimum VAT refund amount is SAR 1,000 or SR 1,000
Non-Saudi residents, including tourists, pilgrims, family visa holders, Iqama holders, and Saudi nationals, must pay a 15% VAT on their purchases in Saudi Arabia. However, as per Article 70 of the Saudi VAT implementation guidelines, non-residents can claim a refund on this VAT. To be eligible for a refund, the VAT-incurring goods must not be used within Saudi Arabia and must be taken out of the country.
The minimum amount of VAT that can be claimed is SAR/SR 1,000. Non-residents can apply for a refund within six months of the calendar year-end in which the VAT was paid. To claim a VAT refund at a Saudi airport, non-residents must submit an application, including the name of the supplier, at the VAT Refund counter in Jeddah, Riyadh, or any other international airport in Saudi Arabia. An officer will then provide a form to fill out, check the invoice and item purchased, and issue a receipt for the VAT refund. If the claim is approved, the refund will be paid into the applicant's designated bank account within 60 days.
Eligible persons not carrying out economic activities in Saudi Arabia can apply for a VAT refund for 2022 by 30 June 2023. A non-resident person or company not carrying out economic activities in Saudi Arabia may apply to be considered an 'eligible person' and file an application to refund input VAT. To be eligible, the non-resident person must be established in a country with a transactional tax system similar to Saudi Arabia's, be registered with the competent tax authority for that system, and the country must allow a similar tax refund mechanism for Saudi entities.
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Frequently asked questions
Non-resident persons (tourists) can claim a refund of the VAT paid at Jeddah, Riyadh, or any other airport in Saudi Arabia.
To claim a VAT refund, go to the VAT Refund counter at the airport. The officer will give you a form to fill and check your invoice and the items bought. If your claim is approved, the amount will be paid to your bank account within 60 days.
The claimant should be a non-resident person (not carrying out any economic activity in KSA) and should have incurred VAT during the calendar year. The minimum amount of VAT for which a claim may be submitted is SAR 1,000 or SR 1,000.
