To strengthen its status as a global tourism destination, Saudi Arabia plans to introduce a value-added tax (VAT) refund system for tourists starting next year. This initiative, managed by the Saudi Zakat, Tax and Customs Authority, is part of the kingdom’s ongoing strategy to improve the visitor experience and increase international tourist numbers.
Promoting Tourism and Economic Growth
Aiming to attract 127 million visitors by the end of 2025, Saudi Arabia is making significant efforts to enhance its tourism sector. The launch of a VAT refund system aligns with the country’s vision to diversify its revenue sources beyond oil and create a lively travel and shopping environment. Officials expect this initiative to make a substantial impact on the national economy, with tourism revenue anticipated to reach SR346.6 billion in the coming years.
Ease of Travel with Enhanced Facilities
Since the introduction of a simplified tourist visa system in 2019, Saudi Arabia has been actively working to appeal to international travelers. The VAT refund system will provide an additional incentive for tourists, making their shopping experiences in the kingdom more enjoyable. With options for on-arrival or online tourist visas, the kingdom has already established itself as a welcoming destination for citizens of eligible countries.
Driving Private Sector Demand
The VAT refund initiative is expected to benefit not just tourists but also local businesses. As the tourism sector expands, the increased demand for services from the private sector will create more opportunities for growth and innovation. From shopping malls to cultural attractions, the kingdom is heavily investing in projects aimed at catering to the varied interests of its visitors.
Saudi Arabia’s strategic initiatives are transforming the nation into a must-visit destination, offering unique cultural experiences and top-notch shopping opportunities. The VAT refund system is another step toward solidifying its reputation as a traveler’s paradise.
