Saudi Arabia is set to launch a value-added tax (VAT) refund system for tourists next year, aiming to attract more foreign visitors. The Saudi Zakat, Tax, and Customs Authority will oversee the initiative, which is designed to simplify tax compliance and enhance the tourism experience, according to the Saudi news portal Sabq.
The kingdom aims to welcome 127 million visitors by the end of 2025, with tourism revenues projected to reach SR346.6 billion. This growth is expected to significantly boost the national economy by increasing non-oil revenue and driving demand for private sector services.
The VAT refund system will enable foreign tourists to reclaim VAT paid on purchases during their stay, making shopping more appealing and fostering tourism.
Recent Efforts to Boost Tourism:
In recent years, Saudi Arabia has introduced several measures to attract international visitors, including:
- Launching a tourist visa system in 2019, allowing citizens of many nationalities to obtain visas on arrival or online.
- Introducing a four-day transit visa in 2022, enabling travelers to perform Umrah, visit the Prophet’s Mosque in Medina, and explore cultural events across the kingdom.
In 2023, the number of tourists in Saudi Arabia exceeded 100 million, including 77 million domestic and 27 million international visitors, as announced by Tourism Minister Ahmed Al-Khateeb. This milestone met the country’s annual tourism target.
Saudi Arabia is striving to position itself among the world’s top 10 tourist destinations, reinforcing its role as a global hub for cultural and religious tourism.
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