Saudi Arabia will launch a value-added tax (VAT) refund system for tourists next year as part of its efforts to attract more foreign visitors. The Saudi Zakat, Tax and Customs Authority will oversee the system, which is intended to streamline tax procedures and enhance the overall visitor experience, according to reports from Saudi news outlet Sabq.
The kingdom has set an ambitious goal to attract 127 million visitors by the end of 2025, projecting tourism revenue to hit SR346.6 billion. This initiative is part of broader efforts to diversify the economy, boost non-oil revenues, and stimulate demand within the private sector.
The VAT refund system will enable international tourists to reclaim the VAT they paid on purchases during their stay in Saudi Arabia, making the destination more appealing for shoppers and travelers.
Over the past few years, Saudi Arabia has implemented several measures to attract global tourists, including the introduction of tourist visas available on arrival or online for eligible nationalities since 2019.
In 2022, the kingdom launched a four-day transit visa, allowing travelers to perform Umrah, visit the Prophet’s Mosque in Medina, and explore other cultural or entertainment events across the country.
Tourism figures have seen significant growth, with Saudi Arabia welcoming over 100 million tourists in 2023. According to Tourism Minister Ahmed Al Khateeb, the kingdom surpassed its 2023 tourism targets, recording 77 million domestic travelers and 27 million international arrivals.
