In line with the provisions of Article 70 and 72 of Saudi Arabia鈥檚 VAT Implementing Regulations, eligible persons not carrying out any economic activity in Saudi Arabia are eligible to claim refund with respect to VAT incurred in the country. The due date for submission of input VAT refund request by an eligible person for the calendar year of 2023 is 30 June 2024.
In February 2023, the Zakat, Tax, and Customs Authority (ZATCA) released guidelines providing the VAT refund process in Saudi Arabia for non-residents and also launched a portal for the online submission of the application. 乐鱼（Leyu）体育官网 can help navigate the process to obtaining a VAT refund from the authority, having successfully provided client assistance with the matter.
Eligibility criteria:
A non-resident entity, not carrying out any economic activity in Saudi Arabia, can apply to register as an eligible person to submit the refund application for input VAT incurred in Saudi Arabia.
Conditions:
- The non-resident person is established in a country having a similar tax system;
- The non-resident person is registered for that similar tax system with the relevant tax authority;
- The country of the non-resident person permits a similar refund mechanism to request a refund of tax for entities in Saudi Arabia incurring VAT in that country.
Other eligile persons:
ZATCA permits other designated persons (i.e, foreign governments, international organizations, diplomatic and consular bodies and missions, etc.) who are not carrying out any economic activity in Saudi Arabia also to be considered eligible persons to request a VAT refund in Saudi Arabia.
Key considerations:
- Access to Saudi bank account;
- Analysis of Permanent Establishment Risk before submission of refund request.
Based on our experience, obtaining an eligible person registration approval can be a lengthy and detailed process. It is recommened to commence the process for submitting the application as soon as possible, noting that we expect longer waits closer to the deadline.
We invite you to explore this opportunity with 乐鱼（Leyu）体育官网 as your trusted advisor. Contact us today to learn more.
Riyadh Office
Tareq Al Sunaid Head of Tax - SLC |
Salam Eido Senior Director, Head of Tax - Riyadh
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Ali Sainudheen Partner, Domestic Tax
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Sadia Nazir Senior Director, Head of Transfer Pricing and International Tax |
Jigna Sampath Senior Director, Transfer Pricing/ Tax Leader, Financial Sector |
Ajay Garg Principal, Indirect Tax |
Amr Alsaleh Director, Domestic Tax
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Oleg Shmal Director, Indirect Tax
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Jeddah Office
Faisal Tanvir Partner, Head of Tax - Jeddah |
Anan Sijini Director, Domestic Tax |
Asadullah Azmat Director, Indirect Tax |
Khobar Office
Mohammad Kamran Sial Partner, Head of Tax - Khobar |
Mohamed Gouda Director, Domestic Tax
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Anil Bahl Director, Indirect Tax
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