RIYADH: Saudi Arabia has introduced a new policy allowing tourists to receive a refund of the 15 percent Value Added Tax (VAT) paid on eligible goods and services upon their departure.
The amendment states that VAT on qualified products and services offered to visitors will be zero percent, and the service provider would reimburse the tax amount upon the visitor's departure from the Kingdom.
ZATCA is in charge of approving service providers to manage tourist tax refund facilitation.
ZATCA emphasized that the approved service provider shares responsibility with the tourist to ensure refunds are made in accordance with the regulations.
Until the Electronic Service Law is put into effect, visitors from Gulf Cooperation Council (GCC) nations will be considered non-GCC visitors for the purposes of tax refunds.
Additionally, the amendments require that a transferee of an economic activity must notify ZATCA within 30 days if they acquire an economic activity from another taxable person.
The regulation also states that a taxable person who deregisters must retain necessary records and invoices and is still liable for any dues owed prior to deregistration.
The ZATCA clarified that if the conditions for transferring an economic activity are not met, the goods and services involved will be treated as taxable items.
[Reported by Saudi Gazette]
