Saudi VAT

E-Commerce & Marketplace VAT Obligations

The government has confirmed its intent to expand VAT compliance requirements to e-commerce platforms. Under the new regulations, online businesses—whether based locally or overseas—must register, collect, and remit VAT on eligible sales to Saudi consumers.

This aligns with global tax trends targeting the digital economy, placing additional compliance responsibilities on sellers. For tax professionals and ERP implementers, these changes underscore the need for robust indirect tax automation and advisory services.

Prepare for Jan 2026 rules; ensure platforms are VAT-compliant.

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🧾 VAT Refund Process for Tourists (Saudi Arabia)

🛍️ 1. Purchase of Goods/Services
Tourists buy eligible goods/services in Saudi Arabia and are charged 15% VAT.

💸 2. Zero-Rated Supply for Tourists
The transaction is treated as zero-rated for VAT purposes if it's eligible, meaning the tourist is entitled to a refund later.

✈️ 3. Departure from Saudi Arabia
At the time of leaving the country, tourists can claim a refund of the VAT paid.

🏦 4. Refund Issued by Approved Service Provider
The refund is processed and issued by an authorized VAT refund service provider, assigned by ZATCA.

⚖️ 5. Joint Responsibility
Both the tourist and the refund service provider are jointly liable for any improper or fraudulent VAT refund claims.

📋 6. Eligibility Criteria (To Be Issued by ZATCA Governor)
Detailed rules will define:

Who qualifies as a tourist

Eligible goods

Minimum purchase value

Approved suppliers

Refund application process

🌍 7. Special Case: GCC Tourists
Tourists from GCC countries will be treated like non-GCC tourists for VAT refunds until the Electronic Services Law is in effect.

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