Saudi Arabia to introduce VAT refund for tourists in 2025
Saudi Arabia has announced the introduction of a VAT refund system for tourists from 2025, as part of its Vision 2030 strategy. The system, overseen by the Directorate of Zakat, Taxes, and Customs, will facilitate financial processes for international visitors and enhance the Kingdom's attractiveness as a destination. The goal is to reduce oil dependency and stimulate tourism development.
The plan is to attract 127 million visitors and achieve 346.6 billion SAR in tourism spending by 2025, creating 1.17 million new jobs. The budget has allocated 87 billion SAR for tourism and related sectors, with an emphasis on international cooperation and infrastructure development.
During 2024, Saudi Arabia recorded 59.74 million tourists by mid-year, with 119.6 million expected by the end of the year. Tourist spending is projected to reach SAR 304 billion, while investments in the sector amounted to SAR 8 billion by August, with a projection of SAR 15 billion by December.
The VAT refund system will make travel easier, reduce costs and further attract international tourists, including lovers of cultural and religious tourism. The initiative is part of a broader plan that will position Saudi Arabia as a competitive global tourist destination and a leader in innovative strategies within the region.
