Travellers to be able to reclaim VAT in Gulf state
Saudi Arabia will implement a VAT refund system for tourists in 2025, as part of its efforts to enhance the travel experience and boost tourism. The initiative aligns with the National Tourism Strategy, which targets 127 million visitors and SR346.6 billion in tourism spending by 2025, significantly contributing to non-oil revenue and private sector growth.
Saudi Arabia implemented VAT in 2018, and the Saudi Arabia VAT 15% standard rate was introduced July 2022.
In 2023, Saudi Arabia exceeded its Vision 2030 targets by welcoming 104 million tourists, including 27 million international visitors. By mid-2024, 59.74 million tourists had already been recorded, with a year-end goal of 119.6 million. Tourism spending reached SR156.6 billion by mid-2024, projected to hit SR304 billion by year-end, with investments expected to rise to SR15 billion.
The sector’s rapid growth reflects Saudi Arabia’s commitment to economic diversification and its emergence as a global destination, fostering domestic and international tourism while bolstering the economy.
