In line with the provisions of Article 70 and 72 of Saudi Arabia’s 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. KPMG 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 KPMG as your trusted advisor. Contact us today to learn more.

Riyadh Office

Tareq Al Sunaid

Head of Tax - SLC

E: talsunaid@kpmg.com

Salam Eido

Senior Director, Head of Tax - Riyadh

E: seido@kpmg.com

 

Ali Sainudheen

Partner, Domestic Tax

E: asainudheen@kpmg.com

 

Sadia Nazir

Senior Director, Head of Transfer Pricing and International Tax

E: sadianazir@kpmg.com

Jigna Sampath

Senior Director, Transfer Pricing/ Tax Leader, Financial Sector

E: jignasampath@kpmg.com

Ajay Garg

Principal, Indirect Tax

E: gajay@kpmg.com

Amr Alsaleh

Director, Domestic Tax

E: amralsaleh@kpmg.com

 

Oleg Shmal

Director, Indirect Tax

E: oshmal@kpmg.com

 

Jeddah Office

Faisal Tanvir

Partner, Head of Tax - Jeddah

E: ftanvir@kpmg.com

Anan Sijini

Director, Domestic Tax

E: asijini@kpmg.com

Asadullah Azmat

Director, Indirect Tax

E: aazmat@kpmg.com

Khobar Office

Mohammad Kamran Sial

Partner, Head of Tax - Khobar

E: ksial@kpmg.com

Mohamed Gouda

Director, Domestic Tax

E: mohamedgouda@kpmg.com

 

Anil Bahl

Director, Indirect Tax

E: anilbahl@kpmg.com